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HEARINGS 


BEFORE THE 


COMMISSION TO INVESTIGATE 
THE PNEUMATIC-TUBE 
POSTAL SYSTEM 


DECEMBER 2, 3, 9, and 17, 1912, and 
JANUARY 8, 25, and 29, 1913 


\A . v, 




WASHINGTON 

GOVERNMENT PRINTING OFFICE 
1913 




PNEUMATIC-TUBE POSTAL COMMISSION. 

Hon. SIMON GUGGENHEIM,* Senator from Colorado. 

(Chairman to March 1,1913.) 

Hon. HOKE SMITH, Senator from Georgia. 

(Chairman from March 1,1913.) 

Hon. WILLIAM O. BRADLEY, Senator from Kentucky. 
(Member from March 1,1913.) 

Hon. FRED L. BLACKMON, Representative from Alabama. 
Hon. VICTOR MURDOCK, Representative from Kansas. 

Hon. JOSEPH STEWART, Second Assistant Postmaster General. 


Mr. James F. BELFORD.f 

(Secretary to March 1,1913.) 


Mr. Malcolm Johnston^ 

(Secretary from March 1,1913.) 


* Senator Guggenheim resigned as chairman and as a member of the commission on March 1, 1913, his 
term as Senator expiring March 3,1913, and Senator Smith was elected chairman to succeed him. Senator 
Bradley was appointed to succeed Senator Guggenheim as a member of the commission. 

fMr. Belford resigned as secretary on March 1, 1913, and Mr. Malcolm Johnston was elected to succeed 
him. 


2 


D. OF D 




£ 

PNEUMATIC-TUBE SERVICE FOR THE MAILS. 


HEARINGS BEFORE THE JOINT COMMISSION OF THE SENATE AND 
THE HOUSE OF REPRESENTATIVES OF THE UNITED STATES, 
APPOINTED UNDER AN ACT OF CONGRESS APPROVED AUGUST 
24, 1912, REGARDING THE PNEUMATIC MAIL SERVICE. 


Washington, D. C., Monday , December 2, 1912. 

The commission met at 3 o’clock p. m. 

Present: Senator Simon Guggenheim (chairman), Senator Hoke 
Smith, Representative Fred L. Blackmon, Representative Victor 
Murdock, and Hon. Joseph Stewart, Second Assistant Postmaster 
General. 

The Chairman. If there are any gentlemen here representing the 
Pneumatic Transit Co., of Boston, the commission would like to hear 
from them. 

Air. Samuel L. Powers. Mr. Chairman and gentlemen of the com¬ 
mission, I represent the American Pneumatic Service Co., of Boston, 
which is the owner of the stock of the subsidiary companies furnish¬ 
ing pneumatic-tube service in the cities of Boston, New York, Chicago, 
and St. Louis. We are not interested in the plant that is constructed 
in the city of Philadelphia; the owners are also represented here by 
Mr. Delano, of New York. 

The parties that appear here as representing the American Pneu¬ 
matic Service Co.—and I give their names so that they may appear 
as part of the record—are: William H. Ames, president of the com¬ 
pany; Gilmer Clapp, treasurer of the company; Robert S. Ingram, 
secretary of the company; and also Col. Charles H. Hayden, a mem¬ 
ber of the executive committee and head of the banking house of 
Hayden, Stone & Co., that has had to do with financing the proposi¬ 
tion for a number of years. We also have Mr. B. C. Batcheller, who 
is the chief engineer of the company located in New York, and M. L. 
Emerson, the operating engineer. 

I will say, Mr. Chairman and gentlemen of the commission, that 
we are here to aid you in making this investigation, which is, we 
understand, your duty under a resolution passed in the last session 
of Congress, and we want to give you all the possible assistance we 
can. All our books and papers are open to your inspection. We 
have endeavored to anticipate, to some extent, the information that 
we had that would be required by you and we have tabulated the 
statistics in connection with these companies. I am not going to 
unnecessarily take up the time of the commission. I assume that the 
hearings must, more or less, be informal, but it is our desire that you 

3 




4 


PNEUMATIC-TUBE SYSTEM. 


shall have access to all information in any way connected with the 
companies which we own and operate. 

Col. Hayden is obliged to return to New York to-night. He knows 
the financial side of this proposition perhaps as well as anyone, and I 
am going to ask you, Mr. Chairman, if it is agreeable to the commis¬ 
sion, to hear Mr. Hayden at this time. 

The Chairman. It is entirely agreeable, and we would like to hear 
from Mr. Hayden now. 

STATEMENT OE MR. CHARLES H. HAYDEN, OF NEW YORK. 

Mr. Hayden. My firm has been connected with this company as 
bankers for a period of some six or seven years. The capital of the 
parent company, the American Pneumatic Service Co., is somewhat 
in excess of $13,000,000. The business of the company is divided into 
two very distinct branches; one branch is known as the Lamson Co., 
which is largely given to pneumatic tubes and other devices for in¬ 
ternal work, and the other branch is that which is given over exclu¬ 
sively to exterior work for tubes for transmitting the United States 
Government mail. It is that branch of the business that I under¬ 
stand we are to take up at this hearing. Owing to the fact that vari¬ 
ous States require a local corporation to have a franchise in their 
cities for these tubes, it has become obligative for the parent company 
to organize in each State where mail tubes were constructed a cor¬ 
poration in that State. Therefore, instead of the American Pneu¬ 
matic Service Co. owning mail tubes in different States in fee simple, 
it owns the securities, bonds, notes, and stock of four different com¬ 
panies which operate four sets of tubes, to which Mr. Powers has 
referred, in Boston, New York, Chicago, and St. Louis. The figures 
as to the cost of those tubes, which our books which are open for 
investigation will show, are estimated, roughly, to have cost about 
$7,200,000.. 

In addition to my position as banker for the company, comes up 
the question of having purchased many of their bonds and under¬ 
written their securities, which are now very widely scattered among 
the general investing public throughout New England, which would 
that way make me, so to speak, the spokesman and representative of 
what might be called the owners of the company, in that the share¬ 
holders are naturally the owners of any corporation. 

What has, from our point of view, brought this matter to a climax, 
you might say, is the method of conducting this business on our part 
in order to conform to the formal contract which the United States 
Government has tendered us and under which we are operating. 
That contract is a contract for a period of 10 years. The present 
contract was entered into in 1906, and therefore has some three years 
and a fraction yet to run. Under that contract we are receiving a 
flat rental of $17,000 a mile, and we are operating approximately 46 
miles of tubes. The first charge against that income from our cor¬ 
porate standpoint is the cost of operation. After that comes the 
question of such interest as we must necessarily pay in order to bor¬ 
row or raise the money with which to build these tubes. In addition 
to that, we are confronted as a private corporation with the question 
of paying a franchise tax, which differs in various States, amounting 


PNEUMATIC-TUBE SYSTEM. 


5 


in the case of the Chicago system to 5 per cent of our gross income. 
Another feature, which you will soon see is very detrimental to our 
carrying on the present system, is the fact that our Chicago franchise 
at its expiration becomes, without any payment to us whatsoever, the 
property of the city of Chicago. 

Now, whenever any banker asks his clients for money it is impera¬ 
tive that he should show them first that they are going to get a rea¬ 
sonable return on that investment, and, second, that they are going 
to get their property back. Now, that has been becoming more acute 
annually, as you will readily see, and if we build any extension to 
these tubes to-day on a contract that has only three and a half years 
yet to run we are up against the proposition in three and a half 
years of how we are going to get our principal back. Of course you 
may sav that another administration may decide to renew these con¬ 
tracts for another series of years, but you can not ask investors to 
give you money with that uncertainty. 

Further than that, of late, since we have perfected these tubes so 
that they are operating well, we have had a number ox demands for 
an extension of the service, and we have simply been unable fairly 
to the people who have made us their trustees to make these exten¬ 
sions, because we could absolutely in no way assure them that there 
was any chance of their getting back the principal of their invest¬ 
ment; and that, of course, until three and a half years from now, 
when the question of another contract will be taken up, means that 
we have to stand perfectly still; we can do nothing for the Govern¬ 
ment in the way of extending the tube service. 

Mr. Murdock. Do you believe the annual rental of $17,000 is too 
small ? 

Mr. Hayden. If there were a way of making a contract, Mr. Mur¬ 
dock, by which we could see that at the expiration of that contract 
the Government would pay us what we had actually expended in 
constructing the service, I think very likely that $17,000 a mile would 
be fully a fair rate. In other Avords, I mean by that that if you take 
the rental we are receiving on the cost of our tubes and deduct from 
that the cost of operating, we might be getting a reasonable interest 
in return as long as that lasted, but if a man spends $6,000,000 or 
$7,000,000 for a set of tubes and receives 6, 7, or even 10 per cent for 
a few years on it, and then finds that the whole hundred per cent of 
principal is gone, he has gotten back a very small portion of what he 
was worth before he went into the enterprise. 

Mr. Murdock. Are you acquainted with the early construction of 
the first tubes in Philadelphia? 

Mr. Hayden. I am not, because we have nothing to do with the 
Philadelphia Co. It is not owned by us or connected with us in any 
way, shape, or form. 

Mr. Murdock. My recollection is that the annual rental in the be¬ 
ginning was $10,000 per mile, and now it has been increased to 
$17,000, and yet the men who own the tubes are not asking for more 
increase of rentals ; they would like to dispose of the tubes. Is that 
a correct statement? 

Mr. Hayden. I think that is a very correct statement. 

Mr. Murdock. They do not wish to own the tubes any longer; they 
would like the Government to take the tubes over? 


6 


PNEUMATIC-TUBE SYSTEM. 


Mr. Hayden. If you will allow me to qualify your statement, I 
would say that an investigation would show that if you would assure 
us of a return of the property at the expiration of a contract; that is, 
that the contract can be made for perpetuity or that a compensation 
for the principal outlay returned to us at the expiration of a limited 
contract, then I think that $17,000 a mile for tubes that are now 
constructed might be shown to give a reasonable return. 

Mr. Mukdock. How much do you apply to the deterioration of your 
plant? 

Mr. Hayden. Nothing. 

Mr. Mukdock. As a matter of fact, is not the wear and tear par¬ 
ticularly on the cartons that pass from place to place considerable 
and the expense in connection with that considerable? 

Mr. Hayden. I would rather leave such questions as that to be an¬ 
swered by our engineers, if that is agreeable to you, Mr. Murdock. 

Mr. Murdock. Certainly. 

Mr. Hayden. The engineers are here and will be glad to answer 
any questions you desire to put to them. I merely wanted to touch 
on, purely and simply, what the position of the owners of this prop¬ 
erty is toward the United States Government, because it has seemed 
to me that that was the crux of the whole thing. Are we here to get 
an abnormal price for what we own? That is a perfectly natural 
question. Where is there any advantage in the Government buying 
these tubes if there is a great advantage to us in selling them ? You 
know, Mr. Murdock, if there was not a buyer and a seller to every 
transaction there would not be any business in this country. 

Mr. Murdock. Do you feel yourself menaced at all with new de¬ 
vices which would supersede your plant? 

Mr. Hayden. Not in the slightest. In other words, it is my indi¬ 
vidual opinion, from the association we have had with this company 
for a series of years, that we have in the present 8-inch tube, which 
is running through the streets and transporting your mail, something 
which will be a desirable and serviceable thing for a great many 
years to come; something which is not going to deteriorate, as our 
engineers who have constructed these works will assure you. 

Mr. Murdock. On the investor’s side, about three or four years ago 
in the Post Office bill which passed Congress, a tender was made of 
new contracts to any one who would take them by the Government 
for tubes in Cincinnati, Kansas City, and San Francisco. The Gov¬ 
ernment, as I understand it, never received any offers from anyone 
to build those tubes. Why did the investing public generally "stay 
away from that proposition? 

Mr. Hayden. Because of the very point that I have just pointed 
out to you; that we had no assurance whatsoever of any possible way 
of getting our principal back. That is the absolute reason. While 
the total amount of money that we need to raise is small, yet I do 
not think there is a banking house in the United States that can risk 
its reputation, which it may have worked hard to build up, by advis¬ 
ing investors to buy these securities with the knowledge staring them 
in the face all the time that on the limited contract which it is possible 
for them to get to-day with the Post Office Department they may not 
get their principal back. Further than that, you take a case like the 
city of Chicago; you know that if the Government of the United 


PNEUMATIC-TUBE SYSTEM. 


7 


States owned these tubes and the right to build additional tubes, it 
would not be a case of the board of aldermen saying we are going to 
hold up the United States Government; they have to pay us some¬ 
thing. No; it would be axactly the opposite. It would mean that the 
citizens would be crying to their board of aldermen to get them these 
tubes. But what is it we pay? We must first pay a big franchise 
tax and allow our tubes to be confiscated by the city at the expiration 
of the franchise. 

Mr. Murdock, we can not raise the money. This company is rich; 
it has been ably financed; we have no floating debt whatsoever; we 
have $600,000 or $700,000 in cash on deposit in the banks to-day. We 
are in a very strong position, because we have a manufacturing busi¬ 
ness which requires us to be strong, but we do not dare spend this 
money to-day. The Post Office Department has asked us to con¬ 
struct a series of tubes from the Times Square to the general post 
office in New York. We would like to do so. There has been a sug¬ 
gestion of a tube to run from the Pennsylvania Terminal Station 
to the Grand Central. We would like to build that tube, and build it 
with our own money; but how are w T e going to get the principal 
back. Furthermore—and I know that this has nothing to do with 
Mr. Stewart having exacted these things, but it is the law—assume 
that we have a tube running up from down town to Forty-second 
Street, for instance, up Fifth Avenue, which may have been an easy 
street to build. It then goes across Forty-second Street 500 feet 
to the corner of Third Avenue, where we have a post office. Now 
something happens; the building is torn down or something else 
needs to be built there, and they notify us that the post office will be 
at the corner of Forty-second Street and Seventh Avenue, which is 
possibly equally distant from Fifth Avenue. We then have to 
abandon 500 feet of tube which may have cost us tens of thousands 
of dollars and we get nothing for it. We then have to build 500 
feet in another direction, and when we get there we do not get 1 
cent more than when that order was first given us. We always 
contended that there was nothing in the law that obliged us to do 
that, but the Post Office Department has contended that it was obliga¬ 
tory. The practical answer is that up to date we have spent in 
excess of $150,000 on changes of post offices and stations for which 
we have not increased our rental 1 cent. 

Mr. Murdock. What was the original design in the mind of the 
investor in going into pneumatic tubes with respect to getting back 
the property at some time? He knew that necessarily his only cus¬ 
tomer would be the Government, 

Mr. Hayden. The answer to that would go back to my first state¬ 
ment, Mr. Murdock, that there are two branches of this business, and 
the oldest branch is the one that goes back for manv, manv vears to 
the indoor service which exists, as you know, in your dry goods stores 
in the use of wire carriers, until finally they developed the pneumatic 
tubes such as you have seen in Wanamaker’s and other stores. Then 
came the question of enlarging this tube for exterior work so that the 
original securities were issued before all of these contracts with the 
Government, and it became the policy of gentlemen, who are 
not connected with this company to-day, that that was a risk which 
they, being free lancers, were willing to take. It is a risk which we, 
a banking house, are not willing to take. So we have brought the 


8 


PNEUMATIC-TUBE SYSTEM. 


matter to a standstill, by which we are going to continue to operate 
the tubes now built as long as we have a contract to do so, and it 
three and a half years from now you offer us a renewal of contract, 
we shall endeavor to show you that we are entitled to a larger rental, 
and we will show you every book that we have. There is absolutely 
nothing connected with the management of this company to-day 
which does not invite the most complete and full inspection. W e 
will show you that we are entitled to more than $17,000 per mile. 
We are entitled to that fully if it is a perpetual contract, and we 
are as entitled to as many times that as you limit the duration of the 
contract so as to enable us to get back our 100 per cent of principal. 

Now, what is the position of those of us who are trustees for the 
owners of this property, in that we are the directors, as to why we 
should sell these tubes and at what price we should sell them? 
First, our reasons for selling them is that it does not seem feasible for 
the Government to give us a contract which is of sufficiently long 
life and of a sufficiently high annual rental to enable us to get 6 
per cent, we will say, and an additional sum which will amortize, 
at the same rate, the properties at the expiration of the contract. 
If we could get such a contract as that there is no reason why we 
would not build you tubes of any design you want, large or small, 
no matter how many millions of dollars it cost; so w T e can say to 
the people that we ask to subscribe to bonds, u Here is the basis on 
which we are going to build these tubes—this is the rental, this is 
what you will get back in interest, and here is where you get back 
your principal.” 

Now, if that is feasible, it does not even seem necessary to take 
up the question from our standpoint of a sale of the Government; 
but when we look at it from the Government’s standpoint, it seems 
to me there is entirely a different situation arising. 

Mr. Murdock. As a matter of fact, this Government did suspend 
all pneumatic-tube service for a couple of years some time ago, did 
it not? 

Mr. Hayden. I could not answer that question. That is before 
my connection with the company, Mr. Murdock. 

Mr. Murdock. Did that materially affect the price of these se¬ 
curities ? 

Mr. Hayden. I could not tell you. I had no connection with the 
company at that time; but, Mr. Murdock, I might answer that in a 
way that you will possibly consider a perfectly fair answer, when 
I tell you that in 1900 and 1901 a small part of the outstanding se¬ 
curities of this company was represented by mail-tube construction. 
We were then largely the Lamson Co., because they have never 
had a banking house as regular bankers until my own firm took 
that position some six years ago, and, in consequence, it has been 
a continual pouring in of money to build these tubes since that time. 

Now, following out what I was saying about the Government’s 
standpoint, you would not have to pay the franchise tax; you would 
not have to borrow the money as we do on an average of 6 per cent; 
and you would not be confronted with the question of a forfeiture 
of a franchise as we have been in the city of Chicago, where they 
have taken such action. 

Mr. Murdock. At the expiration of how many years ? 


PNEUMATIC-TUBE SYSTEM. 


9 


Mr. Hayden. That was a 20-year contract, which expires in 1923. 

Mr. Murdock. And the contract then goes over to the city of 
Chicago ? 

Mr. Hayden. Yes; in 1923. 

Now, we have prepared in a preliminary way for vour inspection— 
and you can follow the matter up as far as you wish—figures to 
show, first, what our rental has been, which for the sake of argu¬ 
ment I will say is $760,000 to-day; our cost of operation, $380,000. 
Therefore, if you owned the tubes, the United States Government 
would annually appropriate for the same service it has to-day one- 
half of what it is now appropriating. You would save the United 
States Government one-half of what it is now spending in rentals 
for this system. The second thing you would do would be to make 
it possible at once to extend at your own pleasure, in your own way, 
in whatever cities you desire, and in the present cities as many ex¬ 
tensions as you want of the present tube service. What would our 
attitude be in that regard ? First, we consider that if we should 
sel lour present tubes to the Government, coupled with that sale 
and at no charge to them, w T e should have to give to them and 
deliver to them—which we would do—the right to use every one of 
our patents now held or that we may subsequently become the owners 
of and all the appliances that we have for the purpose of transact¬ 
ing the postal mail business of the United States in its present tubes 
or any extensions that they may at any time build. 

Mr. Stewart. If the Government should build without your in¬ 
tervention, would the Government still have the right to use your 
patents ? 

Mr. Hayden. Do you mean in case you bought these tubes? 

Mr. Stewart. Yes. 

Mr. Hayden. We would give you a license without any expense 
on your part to use now and ever afterwards all our appliances and 
patents that should be of any benefit to you for the purpose of trans¬ 
porting mail in the mail service; that is, you would have to give 
us a contract to build the extensions; you would not have to give us 
a contract to build in any city, but having bought our interest in 
the present mail-tube system, you would become the owner of those 
patents for the mail-tubes postal department work. There would 
be no royalty, no cash payment for their use whatsoever, and no 
obligation on your part to employ our engineers or constructing 
force unless you saw that it was to your advantage to do so. 

Mr. Stewart. That is the point I desired to bring out. 

Mr. Murdock. How much is the entire company capitalized for at 
the present time ? 

Mr. Hayden. I think slightly in excess of $13,000,000, of which 
$7,250,000 represents the securities which we have been obliged to 
issue to pay for the four systems which we own. 

Mr. Murdock. In a capitalization plan of that kind what is the 

actual outlay of money ? 

Mr. Hayden. $7,250,000 in cash. 

Mr. Murdock. And you have $13,000,000 securities against this? 

Mr. Hayden. No, sir; this company owned before the mail-tube 
business was gone into the Lamson Co. which does all this interior 
store work, therefore, only so much of the $13,000,000 as is repre¬ 
sented by the parent securities that we have had to sell to raise the 


10 


PNEUMATIC-TUBE SYSTEM. 


$7,250,000 which we have given to the four subcompanies would be 
the portion applicable. 

Mr. Murdock. Have you any preferred stock? 

Mr. Hayden. Our capital is, roughly speaking—of course you un¬ 
derstand that I am carrying these figures merely in my memory— 
$700,000 of first-mortgage 5 per cent bonds. That is part of a very 
much larger issue, but that is the amount actually in the hands of 
the investors; $1,500,000 of the 7 per cent first preferred stock which 
was only issued in 1910, and which was issued and underwritten by 
Hayden, Stone & Co. for the purpose of supplying funds for the 
paying off of the floating debt incurred in recent mail-tube construc¬ 
tion in New York and other cities, principally New York, and, sec¬ 
ond, to supply the company with plenty of money with which to 
build the other tubes which Mr. Morgan, the postmaster at New 
York, has intimated he would like to see built; and that money 
which we have on hand now is partly the balance of that money and 
partly the earnings of the Lamson Co. Following that is $6,300,000 
in second preferred stock. 

Mr. Murdock. Is that at 7 per cent? 

Mr. Hayden. The second preferred stock pays what it can. It is 
paying at the present time 2 per cent. 

Mr. Murdock. Is the first preferred stock accumulative? 

Mr. Hayden. I think it is. Following that is $5,000,000 of com¬ 
mon stock, which amount of stock has been $10,000,000 until a few 
months ago; the stock was selling at such a very low figure that we 
felt we should reduce the par value from $50 to $25 a share, and so 
the common stock now is $5,000,000, being 200,000 shares par value 
$25, instead of 200,000 shares par value $50. 

Mr. Murdock. Are the affairs of both the Lamson Co. and the 
exterior tube transactions so intermingled that you can not divide 
them ? 

Mr. Hayden. Not in the slightest. The American Pneumatic 
Service Co. holds in its treasury 98^ per cent of the stock of the 
Lamson Co. It holds in its treasury practically the entire capital 
stock of the four mail-tube companies of different States. Conse¬ 
quently, in a sale, if such a sale were made to the Government, you 
would purchase in fee simple, not from the American Pneumatic Co., 
but from the trustees of those four mail companies, the property 
which they own in four separate and distinct States. You would 
in no way have to affect its corporate existence in any way, shape, or 
form. Those four companies are called the Boston," the "New York, 
the Chicago, and the St. Louis Pneumatic Tube Companies. 

Mr. Murdock. Do you differentiate between what part of the 
money belongs to the exterior work and what belongs to the interior 
work? 

Mr. Hayden. Each of the mail-tube companies is an absolutely 
distinct corporation. Its books are kept as absolutely distinct as if 
we had no connection with the parent company. Its earnings and 
expenses are distinct, and if there is an excess of income over expen¬ 
ditures that company declares a dividend. Its bank accounts also 
are distinct, and the parent company merely receives from those vari¬ 
ous companies such dividends as their boards of directors declare, 
and simply those dividends being declared to the shareholders at the 
respective companies and the shares being in the treasury of the 


PNEUMATIC-TUBE SYSTEM. 


11 


Pneumatic Tube Service Co. The American Pneumatic Service Co. 
thus acquires the cash that is thereby declared as a dividend; so that 
in an investigation of our books you would not find the slightest dif¬ 
ficulty in ascertaining what each company’s rental is, what each com¬ 
pany's operating expenses are, what each company’s various fran¬ 
chise taxes and interest are, what each company’s dividends are, and 
what each company has received from them. Those figures are here 
compiled, and our auditor can give you a copy of them. 

Mr. Murdock. If the Government should take over the pneumatic 
tube the first public criticism would be, if there was a public crit¬ 
icism, that the original company was overcapitalized. What about 
that proposition? 

Mr. Hayden. The answer to that would be simply this: I think 
that when a man wants to sell something he is pretty apt to sell it 
at a reasonable price if he wants to get rid of it. We want to get 
rid of these mail tubes, because you people do not see your w T ay clear 
to give us a contract that will assure us of our principal, and we pro¬ 
pose to open our books to you so that any auditor can examine and 
certify as to exactly what those cost in cash. That is what we ask 
you to do. 

Mr. Murdock. And we can arrive at that information without 
much difficulty? 

Mr. Hayden. Without the slightest difficulty in any way. 

The Chairman. Have your companies franchises in the cities in 
which you operate ? 

Mr. Hayden. The reason we formed the companies was because it 
was necessary to get the franchises. Each of those companies has 
its franchise. 

The Chairman. Do you know for how long a time these franchises 
run? 

Mr. Hayden. I would have to refer to some of the other gentlemen 
in order to ascertain that. We have told you with reference to 
Chicago; the others are indefinite, what you might call perpetual, 
the right of eminent domain. 

The Chairman. How about Boston? 

Mr. Hayden. Boston is a perpetual contract. I think they are all 
except the one at Chicago. 

Mr. Murdock. Will you give the commission current quotations on 
the securities? 

Mr. Hayden. The bonds, par; the first 7 per cent preferred stock, 
par; the second preferred stock, 24 (par $50) ; the common stock, 5 
(par value $25). 

The Chairman. These shares are being dealt in, I presume ? 

Mr. Hayden. They have been listed on the Boston Stock Exchange 
and reasonably actively dealt in for a great many years. 

Mr. Murdock. Do you remember a maximum on common stock? 

Mr. Hayden. $28 or $29 in 1906. 

The Chairman. Were these shares pretty widely distributed? 

Mr. Hayden. I would like to ask Mr. Ames, the president of the 
company, if he does not have it with him, to wire for a l’ist of stock¬ 
holders to be sent on; they are very widely distributed among a 
very large list of small stockholders o\er 3,000 shares. The bonds 
were likewise very widely distributed. 


12 


PNEUMATIC-TUBE SYSTEM. 


The Chairman. The mail-tube service is only a part of your 
system ? 

Mr. Hayden. The mail-tube service of those four companies is the 
only part that refers to this hearing. The most of our business is the 
business of the Lamson Co., which has nothing to do with the United 
States mail service, and that would continue. That is the business 
of store service; and, incidentally, we are building—not on a rental 
basis, as we did this—ammunition hoists for the United States Navy. 
That, however, is a part of the Lamson Co.’s business and has noth¬ 
ing to do with these mail tubes. 

The Chairman. You have furnished tubes to hotels and office 
buildings ? 

Mr. Hayden. Yes; that is part of the Lamson Co.’s business. 

Mr. Stewart. Do these bonds and stocks to which you have re¬ 
ferred relate to the entire business of the company ? 

Mr. Hayden. Yes, sir; all the subcompany’s securities are in the 
treasury of this parent company or under the trustees of the mort¬ 
gage. 

Mr. Stewart. I think I understood you to say that in case the 
Government purchases the Government would deal directly with the 
trustees, who would transfer fee-simple title to the property? 

Mr. Hayden. Now, you are taking me from the province of a 
banker to the province of a lawyer, but I will answer that by saying 
that it is my judgment as a business man that you would simply 
purchase from the trustees the fee-simple property in these various 
cities. We would probably on our own books have to divide your 
lump-sum payment to the proportionate respective parts for the four 
companies, and that would become a treasury asset of the parent 
company ultimately, and the first use of that money naturally would 
have to be to retire bonds, then first preferred stock, and the balance 
as general capital against the cash which this company has received 
from its sale at par of its second preferred stock. The trustees 
would naturally go to the shareholders of the parent company for 
approval of their action in selling these tubes, without asking for 
anything for patent rights which have cost us in the past a good 
deal. That we anticipate we could get, because we should recommend 
it unanimously. 

Mr. Murdock. How much have you actually put in the construc¬ 
tion of these tubes? 

Mr. Hayden. $7,250,000. 

Mr. Murdock. That, however, is the security figure. What was the 
actual outlay? 

Mr. Hayden. No; you have not gotten that quite right. That is 
the securities on the subcompanies which have been issued and are 
in the treasury of the parent company. 

Mr. Murdock. I understand that perfectly. In other words, you 
are almost a holding company for these other companies, although 
you were the parent company and not the creature of the different 
companies. But what was the actual money put into the construc¬ 
tion of these tubes? 

Mr. Hayden. To the best of my knowledge and belief it (is 
$7,250,000. The amount of securities which we have issued is very 
materially in excess of that, very materially, because, of course, the 


PNEUMATIC-TUBE SYSTEM. 13 

common stock we have just charged off $5,000,000 that was carried 
to represent patents. 

Air. Murdock. Some years ago there was an investigation of this 
subject, and I remember that the committee found at that time that 
the tubes had cost something like $4,000,000 or $5,000,000. 

Mr. Hayden. What year do you think that was in? 

Mr. Murdock. In 1907, I think. 

Mr. Hayden. Do you realize what we have built in New York 
since that time? 

Mr. Murdock. That is just what I want to ask you; has your 
$2,000,000 in excess of that amount been for new construction? 

Mr. Hayden. I would not want to answer that question just in 
that way, because our auditor can answer that better for you. 

The Chairman. If there are any copies of the statement, including 
the figures to which you have referred, available, I wish you would 
present one to the stenographer to be incorporated into the record. 

Mr. Hayden. We shall furnish them for that purpose. Mr. Mur¬ 
dock, of the $7,250,000 it will interest you to know that we only figure 
the cost in Boston at $384,000; the cost in St. Louis at only $279,000; 
the cost in Chicago, and we had to build a tunnel under the Chicago. 
River a year ago, was only $1,000,000; the balance, amounting to 
over $5,500,000, is this very extensive and expensive work that we 
have been doing in New York. It was in 1906 that Hayden, Stone 
& Co. underwrote that issue of preferred and common stock, which 
amounted to $1,250,000, and of second prefererd stock at par with a 
common-stock bonus. In 1910 we underwrote $1,500,000 of this first 
preferred stock. So that answers your question as to the money 
expended. 

The Chairman. If the Government should buy the tubes, what is 
it expected to give as a fair return to the owners of the common stock 
who received it, in a good many instances, as bonus ? 

Mr. Hayden. Nothing. Put that right down here for me—nothing. 

I do not want to see the United States Government pay any man one 
dollar for anything that this company ever issued as a bonus. 

Mr. Murdock. Well, what, then, becomes of the individual holder 
of common stock? 

Mr. Hayden. The individual who has that common stock has got 
to rely on the ordinary industrial development of the Lamson Co. 
to make that stock of value, just as the man who has got Sears-Roe- 
buck stock, which he got for practically nothing, has seen that stock 
become of value. 

Mr. Murdock. However, $7,000,000 of valuable property of which 
he was a part owner has passed from him. 

Mr. Hayden. But in a sale the first portion money of that would 
be used to retire the first-mortgage bonds; the second amount of that 
money would be used to retire in calling in the first preferred stock, 
so that then the common-share holder would find himself in a posi¬ 
tion of being a very much nearer heir to the throne than he was 
before. 

Mr. Murdock. Yes; and that would accrue to his benefit. . 

The Chairman. The stockholders are not the same; that is, those 
who own the preferred stock do not hold the common stock, and vice 
versa 2 


14 


PNEUMATIC-TUBE SYSTEM. 


Mr. Hayden. They have nothing to do with each other. In fact, 
answering what Mr. Murdock said to me a little while ago—and I 
dislike very much to put this statement in the record—we offered 
this 7 per cent first preferred stock to our shareholders at par for 
the purpose of getting this mail-tube service for extension; but our 
shareholders thought we were unwise, and they subscribed exactly 
4 per cent of that stock, and the Hayden, Stone Co. subscribed the 
remaining 96 per cent. 

Mr. Murdock. As the holder of the common stock approaches 
nearer the throne his common stock will increase in value and in 
market quotations? 

Mr. Hayden. That would depend entirely on his view as to how 
rapid the manufacturing business of the Lamson Co. may be devel¬ 
oped to earn dividends on that common stock. Personally, I do not 
think that the sale or retention of these tubes would materially 
affect the price of that common stock favorably, but I can see how T , 
at the end of three and a half years, if we do not sell them and the 
Government does not renew its lease of them, but goes back to horse 
and wagon, it would wipe out the common stock. 

The Chairman. You would not want your concern to dry up, but 
you would extend your enterprises in some other direction ? 

Mr. Hayden. That money would be used to enlarge our manufac¬ 
turing business of the Lamson in building ammunition hoists and in 
such other general business of an allied nature as the Lamson Co. is 
now doing. In fact, the operating head of the Lamson Co. for the 
last few years has strenuously objected to the new capital which this 
parent company has raised being devoted exclusively to building mail 
tubes in New York when he has been willing to show us that we 
could have made more in manufacturing interior plants. In that 
connection, you will recall, Mr. Murdock, that we have built a sim¬ 
ilar tube to those which you leased for the United States Government 
simply as an ordinary manufacturing proposition for the appraisers’ 
stores in New York City. 

Mr. Murdock. That resolves itself, then, back to its final and fun¬ 
damental basis; that is, that this company has one business which is 
very prosperous—the parent company—of interior pneumatic-tube 
transmission, and the outside transmission has only one customer, 
namely, “ Uncle Sam,” and it is not profitable. 

Mr. Hayden. It is not. 

Mr. Murdock. And that the company would like to get out of the 
exterior business and turn it over to the Government on the theory 
that it is a legitimate function for the Government to own those tubes. 

Mr. Hayden. Correct. 

The Chairman. On whose valuation ? 

Mr. Hayden. On such valuation as you gentlemen, after careful 
consideration, should name to the United States Government as being 
fair to both parties. 

I think that each of you gentlemen, individually or collectively, 
can devise something that strikes you as fair. Possibly you would 
like to know the workings of my mind, and I say this simply to put 
a suggestion in your minds, nothing more; you say, What have you 
got up your sleeve; what are you thinking of ? We thought this: You 
could make all these investigations to find out what it actually cost; 
what it earned gross; what it earned net, and then see how this 



PNEUMATIC-TUBE SYSTEM. 


15 


strikes you as a reasonable figure for us to ask; that we will sell you 
these tubes for the sum of money which will show you that it will 
earn 6 per cent legal rate of interest for the United States on the 
annual savings which you will make over and above what vou are 
now paying. In other words, this is to be a recommendation on 
your part to your Congress as an economy for the Government; 
that the price which you propose to pay for these tubes will assure 
the United States Government an income of 6 per cent per year in 
savings on the price that they have paid for it over and above what 
they pay to-day. 

Mr. Murdock. When a discussion was up some years ago for the 
physical valuation of railroads, some one in the Interstate Commerce 
Commission formulated a plan for arriving at the actual ph} 7 sical 
valuation, namely, by taking the cost of construction, the cost of 
reproduction, and the going value and making an average on the 
three. Would that be fair in this instance? 

Mr. Hayden. I should like to figure it out; and if you were in my 
place, I think you would. Offhand, I should say it sounded very 
fair. I can not see in this instance anything about our business 
where such a valuation would be unfair, but I would be very loath 
to stand here and take the sole responsibility without consulting the 
other directors of the company as to what was fair, and you would 
not ask me to; but I should think, as an abstract proposition, that it 
was fair. 

Mr. Murdock. If we are to purchase these tubes, the crux of the 
proposition is how are we to arrive at their value? 

Mr. Hayden. By finding out what they cost first. 

Mr. Blackmon. What they cost you and what they would be 
worth to us. 

Mr. Hayden. Exactly. 

Mr. Murdock. What about the cost of reproduction ? 

Mr. Hayden. We would like to have you put your engineers to 
work on that question and secure an estimate, Mr. Murdock. 

Senator Smith. The problem as to what they are worth to us 
would involve the question of what it would cost to undertake to 
duplicate them; that is, the question as to what they are worth to 
the Government would involve two problems: First, what it would 
cost the Government, independent of you, to provide similar means 
for the use of the Government, and what the means also would be 
worth to the Government if provided, whether constructed for the 
Government or whether yours were used. Both of those propositions, 
I understood, are involved in the question as to what they would be 
worth to the Government, 

Mr. Hayden. Exactly. Of course, you understand that these tubes 
are patented devices, which patents have been issued to us by the 
United States Government; but we have eliminated the question of 
the patents in the discussion which Mr. Murdock and myself have had. 

Senator Smith. There are other patents. Therefore, we could take 
care of ourselves independent of the patents which you control. 

Mr. Hayden. Exactly. We recognize all of that. We are not here 
trying to get one cent where the United States Government could do 

anv better in any way, shape, or form. 

The Chairman. Will the Commission be in a position to ascertain 

the cost of building these tubes ? 


16 


PNEUMATIC-TUBE SYSTEM. 


Mr. Hayden. It seems to me, Senator, that the way you would want 
to do that would be to employ some independent engineer, who had 
no affiliations whatever with us, and have him first find out what it 
had cost us and make you his own estimate as to what it would cost 
to reproduce the same number of miles of tubes in the same location. 
It is a very different thing to build a mile of tubes in various locations. 

Mr. Murdock. In any of these cases did you pay anything for 
franchises? 

Mr. Hayden. When we built in Boston. Chicago, and St. Louis, no. 
Where we acquired the New York-Brooklyn company from a com¬ 
pany which had previously built it that was not in a position to go 
on and complete it, the price that we paid to them in our securities 
and cash represented the value of that franchise in addition to the 
cash cost. 

The Chairman. But in computing a valuation for the tubes do you 
include the value of the franchises? 

Mr. Hayden. No; the figures we have submitted to you were two¬ 
fold, which Senator Smith referred to. First, we show what they 
actually cost in detail, each separate company, and, second, as to what 
might be a proper and fair price to pay. Merely as an example, say 
you were paying us $800,000 to-day in rentals and say we operate 
these for $400,000 a year, you would then, if you owned these tubes, 
only be paying $400,000 a year instead of $800,000 a year. Now, 
$400,000 a year is 6 per cent on $6,600,000; $6,600,000 is about $670,- 
000 less than they cost us. Such a method of computation as that 
would require you to see whether or not our statements as to the cost 
of operation were correct, whether you could operate them for less. 
Our idea in this whole thing is to tell you the truth because of our 
inability to have a permanent franchise or a limited franchise with a 
clause for a return of property at its expiration. 

The Chairman. With the Government? 

Mr. Hayden. With the Government. That is the only thing which 
makes us see any object whatsoever in selling them. 

Mr. Stewart. In offering that suggestion, Mr. Hayden, you are 
proceeding on the theory that we could operate them as cheaply as 
the company does? 

Mr. Hayden. No, Mr. Stewart ; I did not make that statement as 
narrow, quite, as that would appear. I said for you to put your own 
men on and see what it would cost you to operate those tubes, and 
then let us see whether that annual saving which you would make 
and which you, as the head of the Postal Department, could show to 
the United States Government, would clear 6 per cent on what you 
were paying in order to have clear title to these tubes, which, in addi¬ 
tion to that, would give you the right to build such extensions as you 
wish in the present systems, such tubes as you may wish to build in 
other cities, the right to use all of our patents and appliances without 
any compensation to us now or in the future for them, and to build 
those tubes with or without our cooperation, as you saw fit. 

Senator Smith. Are your tubes of uniform size ? 

Mr. Hayden. I think they are all 8-inch tubes. Simply as a mat¬ 
ter of information, but not touching on this direct point, Senator, 
Mr. Stewart and Mr. Morgan, the postmaster of New York City, 
went to Boston within the past 10 days to look at a 30-inch tube 
which we had constructed in a vacant lot a third of a mile long for 


PNEUMATIC-TUBE SYSTEM. 


17 


the purpose of seeing what a 30-inch tube would be like and what it 
would do. Mr. Batcheller, our engineer, who is here, can explain to 
you his views, which have always struck us as particularly sound, the 
fact that there is nothing about a 30-inch tube which makes it, taking 
into consideration the cost of construction and the cost of operation, 
anywhere near as available, except in special instances, to supplement 
an 8-inch tube service. That being technical, however, I would very 
much rather, if it is agreeable to you, that he would answer any ques¬ 
tions in connection with it. You might interrogate him on that 
point. 

The Chairman. Are there any other points^ Mr. Hayden, which 
you desire to cover? 

Mr. Hayden. I wish to answer any questions that any gentleman 
of the commission may desire to put to me. That is all I came for. 

Mr. Stewart. What consideration do you think should be given the 
Government for depreciation? 

Mr. Hayden. That is pretty nearly a technical question, in so far 
as it is a business question. I understand from my talk with Mr. 
Emerson and Mr. Batcheller that these tubes that have been under 
ground in some cases 10 or 15 years have been examined in connec¬ 
tion with other openings that were made and have been found to be 
in exactly as good condition as they were when originally laid. 

The Chairman. Is the work of la}dng the tubes more expensive 
to-day than it was formerly? 

Mr. Hayden. The new form of pavement being of concrete, and 
the pavement stones that are tarred in between, and the requirements 
of city officials for relaying the surface in the same position as it 
was originally, would make the cost of the construction of these 
extensions—especially if they were to be made in New York—more 
than they did in the first place. The cost of material has also in¬ 
creased considerably. 

Senator Smith. Have you given us the cost of operation ? 

Mr. Hayden. Yes, sir; before you came in, Senator Smith, I spoke 
on that subject. We have copies here showing information along 
that line for each member of the commission. 

Mr. Stewart. Are you going to file a statement showing these 
items for the several cities separately ? 

Mr. Hayden. That is included in the statement I have already 

filed. 

Mr. Powers. I think it should be said, Mr. Chairman, that those 
statements cover the last fiscal year which closed on March 31. 

Mr. Murdock. Did your company, Mr. Hayden, have anything to 
do with the construction of the tube which runs from the House 
Office Building to the House of Representatives? 

Mr. Hayden. Nothing that I know of. 

Mr. Murdock. Do you know anything about that tube? 

Mr. Hayden. I do not. That would be a technical question. I 
know we have nothing to do with it in any shape or form, directly 
or indirectly. 

Mr. Stewart. If the Government should purchase, as suggested, 
and desire to extend the service, would your company be available 
for building extensions ? 

78419—13-2 



18 


PNEUMATIC-TUBE SYSTEM. 


Mr. Hayden. As far as I can answer that, yes, sir; and we would 
be very glad to build such extensions as they want, and build them on 
a basis such as you would determine would be a fair one from the 
standpoint of the constructing or manufacturing companies. 

The Chairman. Mr. Hayden, if the commission should want to 
consult further with you, could you come over to Washington again? 

Mr. Hayden. I can come over at almost any time within 24 hours’ 
notice if the commission desires it. 

The Chairman. We are very much obliged to you for your state¬ 
ment. 

Mr. Pow t ers. Mr. Chairman, and gentlemen of the commission, I 
do not know in w T hat order you desire to take up these hearings or 
how much longer you will want to sit to-day. We have here the 
engineers of the company, the auditor, and the secretary, and the 
figures here that have been made up largely by Mr. Emerson. Pos¬ 
sibly you would like to have those figures discussed. 

The Chairman. Suppose you put it this way, Mr. Powers; how 
many gentlemen wish to be heard ? 

Mr. Powers. No more than you desire to hear, Mr. Chairman. 
We are here to furnish you with the information that you desire to 
have. 

The Chairman. But you have some idea as to how many would 
like to be heard. 

Mr. Powers. I look at it that the Congress has imposed upon you 
the burden of making this investigation. Now, we wish to assist 
you as much as possible. 

Mr. Murdock. Apparently we are not going to be able to hear all 
of these gentlemen. It is now half past 4. Are some of the gentle¬ 
men prepared to stay over, Mr. Powers? 

Mr. Powers. Yes; all are prepared to stay over. If you do not 
care to sit any longer to-night we would be very glad to appear here 
in the morning, although some of the gentlemen wish to go to New 
York to-morrow morning if you can hear them at that time. 

The Chairman. We would be glad to have some one go on for 
about 15 minutes now. 

Mr. Powers. I think it would be well for the commission to de¬ 
termine at this time what investigation they wish to make of our 
books, whether they want them made in the different cities or 
whether it is desired to have engineers investigate the plant. It 
may be that you gentlemen desire to take a view of the plant, pos¬ 
sibly in New York City. I would like to arrange all of those things 
before we complete this series of hearings. 

The Chairman. That could be arranged later by correspondence, 
possibly. 

Mr. Powers. Very well, Mr. Chairman. 

The Chairman. We would like to adjourn about a quarter to 5, 
so that we will be able to hear someone now for a few minutes if 
there is anyone who desires to be heard. It has been suggested, Mr. 
Powers, that some one representing the financial end of the company 
be heard now. 

Mr. Powers. Well, the president of the company is here and 
also Mr. Clapp. 

Mr. Gilmer Clapp. If there are any questions you would like to 
ask me, I would be pleased to answer them, but I think Mr. Hayden 


PNEUMATIC-TUBE SYSTEM. 19 

has covered, in a general way, everything that the treasurer could 
say. 

The Chairman. I do not think there are any further questions 
that the commission desires to ask on that subject at this time, Mr. 
Clapp. Senator Smith suggests that one of the engineers be heard 
now. 

The financial statement referred to by Mr. Hayden in his testi¬ 
mony reads as follows: 


Exhibit A. 

POSTAL PNEUMATIC-TUBE COMPANIES. 

Boston, Mass., November 15, 1912. 

The following statements are appended: 

Schedule A.—Results of operating mail tubes for five years ending March 
31, 190S, 1909, 1910, 1911, and 1912. 

Schedule B.—Mileage, rentals, costs, and expenses of each company for year 
ending March 31, 1912. 

Schedule C.—Detailed costs and expenses of each company for year ending 
March 31, 1912. 

Schedule D.—Costs and expenses for year ending March 31, 1912, with 
estimated saving, if tubes were operated under Government ownership. 

REMARKS. 

Schedule A. —In anticipation of this statement being compared with the 
figures given in our published report, it should be explained that earnings 
from miscellaneous sales and income from press lines in Boston which do not 
constitute a part of the mail-tube system are excluded. It may also be pointed 
out that the figures published in the company’s annual report for the year 
1910 showed gross earnings—interest not being deducted. 

Schedule B. —The actual mileage of double tubes in operation at March 31, 
1912, is shown on this statement. The average mileage on which rental was 
received for the year was 44.6734. 

Schedule G. —This statement gives the costs and expenses for the year end¬ 
ing March 31, 1912, as they appear on our books. The numbers on the right 
side of the sheet indicate how the items have been grouped in Schedule B. 

Schedule D. —This statement shows costs and expenses for the year ending 
March 31, 1912, together with the estimated saving to be made under Govern¬ 
ment operation. 

The estimated increases and decreases in the costs and expenses may be 
summarized as follows: 

ESTIMATED INCREASES IN COSTS UNDER GOVERNMENT OPERATION. 

1. Labor. —The companies averaged during the year 153 operators. To 
operate 20 hours per day on 8-hour shifts instead of 10-hour shifts would 
require approximately 25 per cent more men. This is equivalent to 191 men, at 
the average rate the Government pays its laborers, $720 per year, total labor 
cost $137,520, being an increase of $31,923 a year. 

3 and 4. Would probably cost the Government 10 per cent more than private 
companies to make repairs. 

ESTIMATED DECREASES IN COSTS UNDER GOVERNMENT OPERATION. 

5. Steam purchased. —The Government sells steam to the companies sup¬ 
posedly at cost. This must necessarily be on the safe side. It is therefore 
assumed that at least 10 per cent can be saved on this item. 

7. Power wages. — The Government would require approximately 14 men rated 
as oilers at a salary of $780 per annum, and in addition one assistant engineer 
electrician at $1,400, a total of $12,320, thus showing a saving of about $1,400. 

10. Rent, light, and heat. —This amount will be entirely saved. 


20 


PNEUMATIC-TUBE SYSTEM. 


11. Salaries, officers, clerical, etc. —This item covers salaries of all general 
officers of the company, including the manager, hut does not include the resident 
superintendent in each city. 

If the operation of these systems were, for example, taken over by the chief 
electrical and mechanical engineer of the Treasury Department, his office and 
staff could possibly handle same without extra expense. To be conservative, 
however, $5,000 is allowed for any extra expenses. 

12. Legal. —It is assumed that legal services would be provided by legal offi¬ 
cers already appointed. 

13. Rent, light, heat, supplies, postage, traveling, etc. —A saving of $12,801.73 
under this head is estimated as follows: 


Postage_ 

Traveling (\)- 

Telephones_ 

Rent, light, and heat, offices 

Bond premiums, etc- 

Directors’ fees_ 

Fines_ 

Bonuses to employees- 

Right of way and yard rent 
Mail teams- 


$299. 83 
738. 62 
1 , 000 . 00 
1, 239.10 
6, 007. 80 
295. 00 
235. 00 
1, 335. 02 
484. 44 
1,166. 92 


$12,801. 73 

14. Extraordinary expense .—$9,094.26 due to changes in pneumatic-tube plants 
owing to removal of postal stations, etc. 

The expenses, insurance, taxes, depreciation, and interest would not occur 
under Government operation. 


Schedule A.— Postal pneumatic-tube companies. 



1908 

1909 

1910 

1911 

1912 

Rentals . 

$386,176 
287,945 

$520,416 

290,908 

$655,912 
350,787 

$701,752 

391,369 

$759,462 
378,137 

Or>f>rfl.tiriP' and general exnense. 

Gross nrnfits . 

98,231 

229,508 

305,125 

310,383 

381,325 

Insurance . 

1,112 
10, 729 
38,370 
129,371 

1,538 

12,990 

38,370 

142,625 

1,766 
14,672 
38,370 
143,464 

1,445 
21,295 
38,370 
203,522 

2,540 
24,156 
38,370 
221,451 

Taxes . 

Depreciation i . 

Interest . 

Profit . 

179,582 

195,523 

198,272 

264,632 

286,517 

81,351 

33,985 

106,853 

45,751 
50,000 

94,808 

45,000 

Dividends . 

Surplus . 




2 81,351 

33,985 

106,853 

2 4,249 

49,808 



1 Represents depreciation at 5 per cent on cost of construction of Chicago system only. Franchise with 
city of Chicago for 20 years, at the end of which the tubes become the property of the city. 

2 Deficit. 


Schedule B.— Postal pneumatic-tube companies. 



Boston. 

New York. 

Chicago. 

St. Louis. 

Total. 

Mileage. 

6. 774 

26.5230 

9.6017 

1.9465 

44.8452 
$759,462 

Rentals. 

$115,158 

$449,928 

$161,286 

$33,090 



COSTS: YEAR ENDING MAR. 31, 1912. 


Operating tubes: 

Labor. 

Inspection. 

Repairs: 

Stations and carriers. 

Streets. 

Power: 

Steam purchased.... 
Electricity purchased 
Wages. 


$14,872.66 

$65,344.40 

$21,573.06 

$3,806. 41 

$105,596.53 

2,811.79 

4,273.89 

3,789.10 

1,680. 64 

12,555.42 

5,013.34 

26,318.31 

12,257.86 

837.07 

44,426.58 

546. 66 

1,558.57 

170.51 

357.87 

2,292.59 

6,234.86 

26,603.10 

10,398. 76 

3,583. 75 

46,820. 47 

9,032.36 

68,349. 30 

10,784. 60 


88,166.26 

1,990. 76 

7,367. 45 

2,574.92 

1,830.00 

13,763.13 


( 1 ) 

( 2 ) 

(3) 

(4) 

(5) 

( 6 ) 
(7) 





































































































PNEUMATIC-TUBE SYSTEM 


• 21 


Schedule B. — Postal pneumatic-tube companies — Continued. 



Boston. 

New York. 

Chicago. 

St. Louis. 

Total. 

Power—Continued. 

Repairs, boilers, etc. 

Signal wires. 

Supplies, etc. 

General expense: 

Salaries, officers, clerical, etc. 

Legal.. 

$51.27 
154.16 
324.03 

2,926.58 

$1,520.99 
709.50 
2,162.22 

13,594.00 
3,170.25 

11,733.42 

2,999.16 

$1,051.91 
91.70 
329.95 

4,508.21 
75.00 

6,461.09 
5,156.84 

$361.06 

91.42 

1,204.86 

$2,985.23 (8) 
955.36 (9) 
2,907.62 (10) 

22,233.65 (11) 
3,245.25 (12) 

23,095.14 (13) 
9,094.26 (14) 

Rent, light, heat, supplies, postage, 

stationery, traveling, etc. 

Extraordinary expense.... 

Total. 

Insurance. 

Taxes. 

Depreciation... 

2,675.91 
736.85 

2,224. 72 
201.41 

47,371.23 

235,704.56 

78,882.49 

16,179.21 

378,137.49 

595.32 

2,524.39 

1,381.84 
10,540.48 

443.83 
8,384.66 
38,370.00 
48,907.35 

119.54 
2,706.11 

2,540.53 

24,155.64 

38,370.00 
221,450.58 

Interest. 

Total. 

Grand total. 

20,266.07 

140,227.60 

12,049.56 

23,385.78 

152,149.92 

96,105. 84 

14,875.21 

286,516.75 

70,757.01 

387,854.48 

174,988.33 

31,054.42 

664,654.24 


Note.— Numbers on right side show how this summary is made up from detailed expense statement 
shown in Schedule 0. 


Schedule C. — Tube companies' expense, year to Mar. 31, 1912. 



Boston. 

General expenses; 

1. Salaries. 

$2,926.58 
3.45 

2. Postage, printing, etc. 

3. Traveling. 

4. Telegraph and telephone. 

534.38 
300. 00 

5. Rent, light, and heat. 

6. Legal. 

7. Miscellaneous. 

605.60 
75.00 
2.00 
269. 03 

14,872. 66 
108.99 
233. 82 

8. Directors. 

9. Fines. 

10. Bonus. 

Operating; 

11 Labor . 

12. Supplies. 

13. Oil and waste. 

14. Rent, light, heat, etc. 

15. Mail and teams. 

124. 92 
28.75 
2,811.79 

546. 66 
248.01 
4, 761. 40 

3. 93 
2.10 
168.55 
736.85 

16. Drips. 

17. Inspection.. 

18. Repairing tubes and station¬ 
ary machinery. 

19. Repairing terminal machinery. 

20. Repairing carriers. 

21. Repairing building and fix¬ 
tures. 

22. Miscellaneous . 

23. Carfares, etc . 

24. Extraordinary . 

25. Stations, Twenty-second and 
LaSalle. 


New York. 

Chicago. 

St. Louis. 

Total. 


$13,594.00 

$4,508.21 

$1.204.86 

$22,233.65 (11) 

142.39 

109. 49 

44.50 

299. 831 


745.50 

493.00 

238.85 

1,477.35 

■(13) 

3,740. 20 

709. 21 

245.55 

5,229.34 

239.10 

310.00 

300. 00 

1.239.10 


3,170. 25 

75.00 


3,245.25 (12) 

3,066. 09 

1,829.16 

506. 95 

6,007. 80 


165.00 

35.00 

20. 00 

295. 00 

■(13) 

180. 00 

51.00 

2. 00 

235. 00 

752. 49 

234. 68 

78. 82 

1,335.02J 


65,344. 40 

21,573.06 

3,806. 41 

105,596.53 

(1) 

192.34 

138.90 

89. 05 

529. 281 

266.26 

428. 71 

129.30 

1,058. 09 


7. 20 

117. 24 

360. 00 

484. 44 

■(13) 

124. 00 

918. 00 


1,166.92 

562.30 

416.09 


1,007.14 


4,273. 89 

3, 789.10 

1,680. 64 

12,555.42 

(2) 

1,558.57 

170.51 

357.87 

2,292.59 

(4) 

3,165.97 

3,138.19 

18.11 

6,534. 06 

23,121. 90 

9,017.34 

855.18 

37, 755.82 

(3) 

30.44 

102.33 


136. 70 


153.78 

5.77 


161.651 

(13) 

1,122.98 

449.95 

209. 70 

1,951.18 

2,999.16 

3,460.73 

1,696.11 

201. 41 

7,398.15 

1,696.11 

•(14) 


Power: 

26. 

27. 

28. 

29. 

30. 

31. 

32. 

33. 

34. 

35. 

36. 

37. 

38. 

39. 


Steam purchased. 

Electricity purchased. 

Water. 

Boiler room labor. 

Engine supplies. 

Engine labor.. 

Oil, waste, and paper. 

Repairing boilers. 

Repairing P. P. and air pip¬ 
ing. 

Repairing buildings. 

Rent, light, and heat. 

Signal wires. 

Auto. 

Repair shop. 


Total. 


6,234.86 
9,032.36 


22.02 
1,990.76 
302.01 
.99 

50.28 


154.16 

219.32 


47,371.23 


26,603.10 
68,349.30 


81.92 
7,367.45 
1,480. 30 


1,520.99 


600.00 
709.50 


183.79 


235,704. 56 


10,398. 76 
10,784. 60 
.53 


73.93 
2,574.92 
244.58 
1.00 

1,007.58 
43.33 
10.91 
91.70 


214.89 


78,882.49 


3,583. 75 


10.00 
20.06 
1,820.00 
71.36 


361.06 


16,179.21 


46,820.47 (5) 
88,166.26 (6) 
.53 (10) 
10.00 (7) 
197.93 (10) 
13,753.13 (7) 

2,098.25 (10) 
1.991 


2,939.91 
43.33 
610.91 
955.36 
219.32 
398. 68 


• (8) 

( 10 ) 

(9) 

(13) 

(13) 


378,137. 49 


Note.— Numbers on right correspond with numbers in Schedule B. 















































































































































22 


PNEUMATIC-TUBE SYSTEM. 


Rental now paid by Government. 

Annual cost under Government ownership: 

Operating expenses. 

Insurance. 

Taxes. 

Depreciation, Chicago. 

Interest. 


Annual saving, Government operation 

$170,000=5 per cent on $3,400,000. 
$393,000=5 per cent on $7,860,000. 


. $759,462 

$365,664 
2.540 
None. 

221,450 

- 589,654 


169,808 


Schedule D. —Postal Pneumatic-Tube Co., operating costs and expenses. 


Operating tubes: 

Labor. 

Inspection. 

Repairs: 

Stations and carriers. 

Streets. 

Power: 

Steam purchased.. 

Electricity purchased. 

Wages. 

Repairs, boilers, etc. 

Signal wires. 

Supplies, etc. 

General expense: 

Salaries, superintendents, clerical, etc. 

Legal. 

Rent, light, heat, supplies, postage, station¬ 
ery, traveling, etc. 

Extraordinary expense. 


Total. 

Insurance. 

Taxes. 

Depreciation. 

Interest. 

Total. 

Total all expense 


Costs, year 
1911-12, per 
Schedule B. 

Estimated changes in 
these costs if tubes 
were operated by the 
Government. 

Estimated cost 
to operate by 
Government. 

Increase. 

Decrease. 

$105,596.53 
12,555.42 

44,426.58 
2,292.59 

46,820.47 
88,166.26 
13,763.13 
2,985.23 
955.36 
2,907. 62 

22,233. 65 
3,245. 25 

23,095.14 
9,094. 26 

$31,923.00 


$137,519.53 (1) 

12.555.42 (2) 

48,869.24 (3) 
2,521.85 (4) 

42.138.42 (5) 
88,166.26 (6) 
12,363.13 ( 7) 

2.985.23 (8) 
'955.36 (9) 
2,296.71 (10) 

5,000.00 (11) 
.(12) 


4,442.66 
229.26 



$4,682.05 



1,400.00 





610.91 

17,233. 65 
3,245.25 

12,801.73 

9,094. 26 

• 



10,293.41 (13) 
.(14) 





36,594.92 

49,067.85 
12,472.93 


378,137.49 

365,664.56 


2,540.53 
24,155.64 
38,370.00 
221,450.58 


2,540.53 
24,155. 64 
38,370.00 
221,450.58 










286,516.75 


286,516. 75 




664,654. 24 


298,989.68 

365,664.56 



Total estimated saving in operating costs and expenses under Government ownership.$298,989. 68 

Total annual rental paid by Government. 759,462.00 

Total annual operating expense.. 365,664.00 

ctal annual saving under Government operation. 393 , 798 .00 


STATEMENT OF MR. B. C. BATCHELLER, CHIEF ENGINEER OF THE 

AMERICAN PNEUMATIC SERVICE CO. 

Mr. Murdock. Will you please start your testimony, Mr. Batchel- 
ler, by giving us a history of exterior pneumatic tubes, as you under¬ 
stand it? 

Mr. Batcheller. The tubes for transportation of the United 
States mail were constructed in Philadelphia between the general 
post office and the station then known as the East Chestnut Street 
Station. 

Mr. Murdock. That was done, however, without any contract with 
the United States Government? 










































































































PNEUMATIC-TUBE SYSTEM. 


23 


Mr. Batcheller. There was, I believe, a contract with the Gov¬ 
ernment by which the company operated that tube for one year 
without compensation. Then for four years it operated that tube 
for a nominal income of $3,000 a year, I think, which was not enough 
to pay the expenses of operation. 

Mr. Murdock. The original estimates of mechanical efficiency 
were never maintained; they have never gotten out of these tubes 
the speed in expediting the mails that they got originally? 

Mr. Batcheller. The carriers travel through the tubes at a speed 
of 30 miles an hour, but if a carrier is going from the general post 
office in New York to One hundred and twenty-fifth Street it has 
to be redispatched at several intermediate stations along the line; 
for example, at Station A, at Station O, at Station Times Square, at 
Station G, at Station W, at Station H, at Station I, finally reaching 
Station J at One hundred and twenty-fifth Street. 

Mr. Murdock. I interrupted you in your statement of the history 
of the exterior pneumatic tubes. Please proceed with what you were 
saying in that regard. 

Mr. Batcheller. Where the carriers travel at a speed of approxi¬ 
mately 30 miles an hour in the tubes, a little time is lost in trans¬ 
ferring at the intermediate stations, so that the average rate of 
speed from the post office to One hundred and twenty-fifth Street 
is somewhat less than 30 miles an hour. In the report of the com¬ 
mission that made an investigation in 1908 there are some figures 
given showing the average speed from one point to another in 
several cities. 

Referring again to the history or development of the tubes: Fol¬ 
lowing the operation of the line in Philadelphia between the general 
post office and East Chestnut Street Station for a period of five 
years, contracts were made by the Post Office Department for an ex¬ 
tension of the tube service in Philadelphia from the general post 
office to the Reading Railroad Station and the Pennsylvania Rail¬ 
road Station; for lines in New York City between the general post 
office and the station then located in the Produce Exchange; an¬ 
other line from the general post office across the Brooklyn Bridge to 
Brooklyn, and a line from the general post office to Stations D, 
Madison Square, and the Grand Central. Another contract w as 
made for a line in the city of Boston from the general post office to 
the North Railway Station, dhose lines were constructed and com¬ 
pleted about 1898. There was no material extension for several 
years following that. I have forgotten when the next extensions 

were built, but I think it was about 1902 ot 1903. 

Mr. Stewart. If I may interrupt you, Mr. Batcheller, for a mo- 
ment* I would like to say to the chairman that there is given what 
is called a brief history of the pneumatic-tube service,1892 to 1908, 
on pages 15 and following, m the report of the investigation as to 
the pneumatic-tube service for the mails, which report was made by 
a former commission in 1908, and I would suggest that that history 
be set out in the record at this time to cover all those questions. 
That gives all the contracts that have been entered into and the con¬ 
ditions under which the contracts were made. , 

The Chairman. The history to which you refer, Mr. Stewa , 

may be inserted in the record at this time. 


24 


PNEUMATIC-TUBE SYSTEM. 


Brief History of Pneumatic-Tube Mail Service, 1S92-1908. 

The use of pneumatic tubes in the United States for the general transmission 
of first-class mail is believed to be unique, and it is therefore interesting, as 
well as valuable, to trace briefly the development of the system. 

In foreign countries pneumatic tubes of small diameters (say 2^ to 3 inches) 
had been used for the transmission of telegrams, and in some instances for the 
transmission of special-delivery letters or cards. In the United States there 
were also some instances in commercial business of pneumatic tubes of simi¬ 
lar dimensions for like purposes and for comparatively short distances. The 
first installation of a large tube for postal purposes was made in 1893 in Phila¬ 
delphia, Pa., this being a 6-inch tube, and it is said that the problems connected 
with its operation were entirely different from those solved in the use of the 
tubes of smaller diameter. This 6-inch tube was in operation for about four 
years before the installation of 8-inch tubes was commenced. There has been a 
constant employment of inventive ingenuity during the past 15 years to im¬ 
prove the mechanical operation of these larger systems. The chronology of the 
pneumatic-tube mail service is briefly given as follows: 

1892. —Annual report of Postmaster General Wanamaker announces that he 
was able to secure an item of $10,000 in the last appropriation bill for experi¬ 
ments with pneumatic tubes, and that in response to advertisements eight pro¬ 
posals were submitted, of which, however, only one proved practicable for 
immediate testing. The Pneumatic Transit Co. of New Jersey is already 
putting down tubes in Philadelphia between the general post office and the 
East Chestnut Street Postal Station, to be completed soon after December 1, 
1892. He is informed that the company is at an expense of $25,000, and the 
Post Office Department can try the system for one year without expense, and 
may then rent, purchase, or reject it without incurring any liability. 

1893 — March 7.—Use of Philadelphia 6-inch tube, as above described, com¬ 
menced this date for the transmission of mail experimentally. 

1891f — March 1. —Commencing this date Post Office Department pays for the 
use of the Philadelphia tube, the terminus of which has been removed from the 
East Chestnut Street Station to the Bourse Building. Total distance, 0.55 
mile; annual pay, $4,000. This was reduced, commencing March 1, 1895, to 
$3,450 per annum. 

1895. —Annual report of Second Assistant Postmaster General intimates that 
arrangements may soon be feasible for an experimental tube or mechanical 
appliance between the New York general post office and the Forty-second Street 
Depot and between New York and Brooklyn. He remarks that this will be very 
desirable on account of the heavy tonnage between the points named and the 
present expense of transporting the mails between these points. 

1896. —Appropriation bill for fiscal year ended June 30, 1897, in the allowance 
for “ Mail messenger service,” provides that a sum not exceeding $35,000 may 
be used for the transportation of mails by pneumatic tubes or other similar de¬ 
vices. 

Report of Second Assistant Postmaster General states that 24-inch or 36- 
inch tubes are not practicable on account of construction difficulties and ex¬ 
pense, but that a 10-inch tube with 8-inch carriers would relieve the department 
of 65 to 70 per cent of trips now made by wagons. He remarks that prospects 
seem favorable for early contracts in New York, Philadelphia, and Boston, and 
that it is possible that a proposition may be received from New York City for 
pneumatic-tube service over almost the entire island, in which event he would 
ask that Congress change the amount of money which is now paid for regula¬ 
tion wagon service in New York City to the pneumatic-tube fund, “ as the 
establishment of the tube service would practically do away with wagon serv¬ 
ice in New York City.” He recommends that $50,000 be appropriated to suc¬ 
ceed the present appropriation of $35,000. 

1897. —The appropriation bill for the year ended June 30, 1898, permits of 
the expenditure of $150,000 (out of mail-messenger fund) for transportation of 
mail by pneumatic tube or other similar device. In pursuance of this, contracts 
were made for service in Philadelphia, Brooklyn, New York, and Boston, all 
contracts contemplating 8-inch tubes, carriers to be 6| by 21 inches, to be 
dispatched at intervals of six seconds. The Second Assistant Postmaster Gen¬ 
eral estimates that each carrier will hold about 600 ordinary letters, making 
a capacity of 360,000 per hour eqyffi way. 

October 15, New Yoric, N. Y .—Tube service began this date, general post 
office to Station P, 0.7 mile. 


PNEUMATIC-TUBE SYSTEM. 


25 


December 20. Boston, Mass. —Tube service began this date from general 
post office to North Union Station, 0.74 mile. 

1898—February 26 ._ New York, N. Y. —Tube service began this date, general 
post office to Station P, 0.7 mile. 

March 10. Philadelphia, Pa. —Contract made this date for renewal of serv¬ 
ice on 6-inch line, general post office to Bourse Station, 0.52 mile, at $17,600 
per annum. 

April 7. Philadelphia, Pa. —General post office to Broad Street Station tube 
service commenced this date, 0.94 mile, $16,966 per annum. Reading Terminal 
not yet connected. 

August 1. Brooklyn, N. Y. —Tube service began this date between New York 
general post office and Brooklyn general post office, 1.65 miles. 

Pneumatic-tube service in operation Aug. 1, 1898. 


City. 

Termini. 

Length. 

Annual rate. 

Rate per 
mile. 

Boston, Mass. 

New York, N. Y. 

Philadelphia, Pa. 

Total. 

General post office to North Union Station... 
New York general post office to Brooklyn 
general post office. 

General post office to Station P. 

General post office to Stations D, Madison 
Square, and F to H. 

[General post office to Bourse Station. 

• General post office via Reading terminal to 
( Broad Street Station. 

Miles. 

0.74 
1.65 

| 4.20 

.52 

.94 

i $17,055.00 

2 20,200.00 

s 176,099. 70 

^ 17,965.00 
16,966. 00 

$23,047 
12,242 

41,928 

34,548 

18,048 

8.05 

248,285.70 

30,842 




1 Includes steam power, $8,055. 

2 Includes labor, $6,200. 

3 Includes labor, $10,000; steam power, $15,044.70; and 2 engineers, $2,555. 

1 Includes steam power 

The post-office appropriation bill for the year ended June 30, 1899, prohibited 
any new contracts for pneumatic-tube service. (This prohibition continued 
until June 30, 1901.) 

1899 to 1901.— 


Pneumatic-tube service in operation June 30, 1899, 1900, and 1901. 


City. 

• 

Termini. 

Length. 

Annual rate. 

Rate per 
mile. 

Boston, Mass. 

General post office to North Union Station.. 
New York general post office to Brooklyn 
general post office. 

• General post office to Station P. 

Miles. 

0.74 

$9,000 

$12,162 

Now N "V 

1.65 

1 

i 20,200 

12,242 

Philadelphia, Pa. 

General post office to Stations D, Madison 
Square, and F to H. 

[General post office to Bourse Station. 

General post office via Reading terminal to 
Broad Street Station. 

} 4 ' 20 
.52 
.94 

2 158,500 

17,600 

16,966 

37,738 

33,846 
18,048 

Tnt.nl 


8. 05 

222,266 

27,610 

1 




i Includes $6,200 for labor. 2 Includes $10,000 for labor. 


Congress omitted to make any appropriation for pneumatic-tube service for 
the fiscal year ended June 30, 1902, hence all of this service was discontinued 
and the tubes not operated from July 1, 1901, to June 30, 1902, inclusive. In 
lieu of an appropriation Congress directed an investigation by the Postmaster 
General as to the cost of construction and operation and the utility of a system 
of pneumatic tubes, etc., to enable Congress to determine whether to own,, 
lease, extend, or discontinue. 













































26 


PNEUMATIC-TUBE SYSTEM. 


KEC0MMENDAT10NS BY COMMITTEE OF EXPERTS, 1901. 

1901—January 4 .—Report this date by Postmaster General to Congress, as 
directed, representing an investigation of tbe pneumatic-tube service by local 
postal officials, this result being revised by a general committee of postal offi¬ 
cials, and this result finally passed upon by a commission of seven outside ex¬ 
perts representing men of high commercial and engineering ability. The final 
committee of experts presented a number of positive conclusions, among which 
the following are the most important: 

1. They found the new method of mail transportation to be a valuable and 
mechanically successful system, practically adapted in an admirable manner 
to the purposes of the Post Office Department and of great advantage to the 
business interests of the country in facilitating mail transmission. 

2. They believed that the cost of pneumatic service could be reduced some¬ 
what, and very considerably reduced with the further progress of improvement. 

3. They declared that ownership by the Government is considered desirable 
whenever the systems adopted have passed the experimental stage. 

4. As regards renewing contracts or making new contracts they suggest that 
an option of later acquirement be included and that such acquirement be by ap¬ 
praisal by experts of all property and all patent rights applicable to the con¬ 
tract, or at a stated figure. 

5. They advised the retention of all previously established pneumatic-tube 
service in Boston, New York (including the New York and Brooklyn line), 
and Philadelphia, 8.05 miles; and recommend the following additional mileage: 

Miles. 


New York City_18*00 

Chicago_ 8. 78 

Philadelphia_ 6.19 

Boston_ .70 

St. Louis_ 3.16 


Total_36.83 


This making a grand total of both old and new service of about 44.88 miles. 

LAW OF APRIL 21, 1902. 


1902—April 21. —The Post Office appropriation bill approved this date for the 
year ended June 30, 1903, contained the following provision: 

“For the transmission of mail by pneumatic tubes or other similar devices, 
$500,000, or so much thereof as may be necessary; and the Postmaster General 
is hereby authorized to enter into contracts for a period not exceeding four 
years, after public advertisement once a week for a period of six consecutive 
weeks in not less than five newspapers, one of which shall be published in 
each city where the service is to be performed. That the contracts for this 
service shall be subject to the provisions of the postal laws and regulations 
relating to the letting of mail contracts, except as herein otherwise provided, 
and that no advertisement shall issue until after a careful investigation shall 
have been made as to the needs and practicability of such service and until a 
favorable report, in writing, shall have been submitted to the Postmaster 
General by a commission of not less than three expert postal officials, to be 
named by him; nor shall such advertisement issue until in the judgment of 
the Postmaster General the needs of the postal service are such as to justify 
the expenditure involved. Advertisements shall state in general terms only 
the requirements of the service and in form best calculated to invite competitive 
bidding. 

“That the Postmaster General shall have the right to reject any and all bids; 
that no contract shall be awarded except to the lowest responsible bidder, 
tendering full and sufficient guaranties, to the satisfaction of the Postmaster 
General, of his ability to perform satisfactory service, and such guaranties 
shall include an approved bond in double the amount of the bid. 

“ That no contract shall be entered into in any city for the character of mail 
service herein provided which will create an aggregate annual rate of expendi¬ 
ture, including necessary power and labor to operate the tubes, and all other 









PNEUMATIC-TUBE SYSTEM. 


27 


expenses of such service in excess of 4 per cent of the gross postal revenues of 
said city for the last preceding fiscal year. 

“ That no contract shall be made in any city providing for 3 miles or more 
of double lines of tube which shall involve an expenditure in excess of $17,000 
per mile per annum, and said compensation shall cover power, labor, and all 
operating expenses. 

“That the Postmaster General shall not, prior to June 30, 1904. enter into 
contracts under the provisions of this act involving an annual expenditure in 
the aggregate in excess of $800,000; and thereafter only such contracts shall be 
made as may from time to time be provided for in the annual appropriation act 
for the postal service; and all provisions of law contrary to those herein con¬ 
tained are repealed.” 

Under this act contracts were made for service covering mileage of double 
lines of tubes in cities as follows: 


Miles. 

Boston_ 5. 44 

New York_ 24.653 

Philadelphia_ 7. 642 

Chicago_ 8. 70 

St. Louis_ 3.16 


Total_ 49.595 


1903 .—During this fiscal year pneumatic-tube service was resumed in Boston, 
New York, and Philadelphia (8.05 miles), and extended so that on June 30, 
1903, there was an aggregate in the three cities in operation of 12.495 miles. 

190J t . —Congress, in Post Office appropriation bill approved March 3, 1903, 
appropriated “ for transmission of mail by pneumatic tubes or other similar 
devices, $800,000.” 


RECOMMENDATIONS OF COMMITTEE OF 1905. 


1905. —Congress, in Post Office appropriation bill approved April 23, 1904, 
appropriated “ for transmission of mail by pneumatic tubes or other similar 
devices, $500,000, from which sum may be paid amount necessary to fulfill the 
existing contract for service in Boston.” 

Under date of October 4, 1905, a commission of three expert postal officials, 
appointed by Postmaster General’s order of November 15, 1904, to carefully 
investigate the needs and advisability of extending the pneumatic-tube service, 
submitted its report with the following recommendations for additional mileage: 


City. 

In opera¬ 
tion Oct. 1, 
1905. 

Additional 

recom¬ 

mended. 

Total. 


Miles. 

Miles. 

2.06 

Miles. 

2.06 


6. 89 


6.89 



3.94 

3.94 


8. 88 

8.814 

17. 694 



2. 290 

2. 29 



2. 280 

2. 28 


6. 853 

18.61 

25.463 


1.382 

6. 242 

7. 624 



1.90 

1.90 


2. 09 

1.25 

3.34 



1.62 

1.62 


26. 095 

49.006 

75.101 






1906— Congress, in Post Office appropriation bill approved March 3, 1905, for 
the fiscal year ended June 30, 1906, appropriated “ for transmission of mail by 

pneumatic tubes or other similar devices, $500,000.” mnn * 

1907 _Congress, in Post Office appropriation bill approved June 26, 1906, for 

the fiscal year ended June 30, 1907, appropriated “ for the transmission of mail 
by pneumatic tubes or other similar devices, $900,000, and the Postmaster 
General is hereby authorized to enter into contracts not exceeding m the 




































28 


PNEUMATIC-TUBE SYSTEM. 


aggregate $1,250,000 under tlie provisions of law, for a period not exceeding 
10 years: Provided , That said service shall not be extended in any cities other 
than those in which the service is now under contract under authority of Con¬ 
gress, except the Borough of Brooklyn of the city of New York, and the cities 
of Baltimore, Md.; Cincinnati, Ohio; Kansas City, Mo.; Pittsburgh, Pa., and 
San Francisco, Cal.” 

1908. —Congress, in Post Office appropriation bill approved March 2, 1907, 
appropriated “ for the transmission of mail by pneumatic tubes or other similar 
devices, $1,250,000, and the Postmaster General is hereby authorized to enter 
into contracts not exceeding in the aggregate $1,388,759 under the provisions 
of the law for a period not exceeding 10 years: Provided , That said service 
shall not be extended in any cities other than those in which the service is now 
under contract under the authority of Congress, except the Borough of Brook¬ 
lyn of the city of New York, and the cities of Baltimore, Md.; Cincinnati, 
Ohio; Kansas City, Mo.; Pittsburgh, Pa., and San Francisco. Cal.” 

1909. —Congress, in the Post Office appropriation bill approved May 27, 190S, 
for the fiscal year ended June 30, 1909, provides “ for the transmission of mail 
by pneumatic tubes or other similar devices, $1,000,000; and the Postmaster 
General is hereby authorized to enter into contracts not exceeding in the 
aggregate $1,388,759 under the provisions of the law for a period not exceed¬ 
ing 10 years.” 

The extent of pneumatic-tube service in operation on June 30 in each year 
from 1893 to 1908 is briefly set forth in the following table: 

Growth of pneumatic-tiibe service, 1893-1908. 


Fiscal 


Pneumatic-tube service in operation, etc., in— 


year 
ending 
June 30— 


1893. 

1894. 

1895. 

1896. 

1897. 

1898. 

1899. 

1900. 

1901. 

1902. 

1903. 

1904. 

1905. 

1906. 

1907. 

1908. 


Philadel¬ 

phia. 

Boston. 

New 

York. 

Chicago. 

St. Louis. 

Brook¬ 

lyn. 

Miles. 

0 ) 

0. 55 

Miles. 

Miles. 

Miles. 

Miles. 

Miles. 






.55 






.55 






.55 






1.46 

0.74 

5. 85 




1.46 

.74 

5. 85 




1.46 

.74 

5.85 




1.46 

.74 

5.85 




( 2 ) 

1.382 

( 2 ) 

4.26 

( 2 ) 

6.853 

( 2 ) 

( 2 ) 

( 2 ) 

1.382 

6.89 

6 . 853 




1.382 

6 . 89 

6 . 853 

8 . 88 

2.09 


4.002 

6.89 

6 . 853 

8 . 88 

2.09 


3.9 

6 . 652 

7 

7.31 

1.68 


6.022 

6 . 652 

9.3998 

7.41 

1.85 






Total 

length. 


Miles. 
0.55 
.55 
.55 
.55 
.55 
8 . 05 
8 . 05 
8 . 05 
8 . 05 
( 1 2 ) 

12. 495 
15.125 
26. 095 
28. 715 
26. 542 
31.3338 


Total 
pay per 
annum. 

Rate per 
mile. 



$4,000 

$7,272 

3,450 

6,200 

3,450 

6,200 

3,450 

6,200 

232,085 

28,830 

222,266 

27,610 

222,266 

222,266 

27,610 

27,610 

( 2 ) 

( 2 ) 

201,095 

16,094 

218,470 

14,444 

401,023 

15,367 

445,563 

15,516 

451,219 

17,000 

532,679 

17,000 


1 Mar. 1 , general post office to East Chestnut Street Station (experimental). 

2 No appropriation; all service discontinued. 


1908 extensions: . Miles. 

Brooklyn, Aug. 14, general post office to Station L. 1.35 

New York— 

July 15, Station O to Station E.. 1 . 1704 

Sept. 21, Station E to Times Square.ll 1739 

Oct. 3, Times Square to Station G.!!!!!!!!!!!!!!! 1 .' 1719 

Nov. 6 , Station G to Station N. 1’ 4351 

Nov. 6 , Station N to Station W.’ 9635 

Nov. 6 , Station W to Station J. 2. 6174 

Nov. 6 , Station J to Station L.!!!!!!!!!!!!! ’ 9522 

Nov. 9, general post office to Hudson Terminal.[ 4214 


Totals for 1908: Length, 42.5896 miles; pay per annum, $724,023; rate per mile, $17,000. 


MILEAGE CONTRACTED FOR AND UNDER OPERATION NOVEMBER 10, 1908. 

The appropriation for the current fiscal year is $1,000,000 and contracts are 
permitted for a total of $1,388,759. The service in operation November 10, 
1908, represents an approximate annual rate of $724,028. The service con- 

































































PNEUMATIC-TUBE SYSTEM. 


29 


traded for represents an annual rate of about $1,089,171.09. The details are 
shown approximately in the following table: 


City. 

Contractor. 

Total service con¬ 
tracted for. 

Total service in opera¬ 
tion Nov. 10, 1908. 

Yet to be 
built. 



Length. 

Annual pay. 

Length. 

Annual pay. 

Boston. 


Miles. 


Miles. 


Miles. 

Boston Pneumatic 
Transit Co. 

6.652 

SI13,089.14 

6.652 

$113,089.14 


New York. 

New York Pneumatic 
Service Co. 

27. SI 

464,270. 00 

19.3056 

328,195.20 

8.0044 

Brooklyn. 


1.35 

22,950.00 
139,570.00 

1.35 

22,950.00 
102,374.00 


Philadelphia. 

Pneumatic Transit Co. 

8.21 

6.022 

2.188 

Chicago. 

Chicago Postal Pneu¬ 
matic Tube Co. 

17.563 

294,470.80 

7.41 

125,970.00 

10.153 

St. Louis. 

St. Louis Pneumatic 
Tube Co. 

3.47 

54,821.15 

1.85 

31,450.00 

1. o2 

Total. 


64.555 

1,089,171.09 

42.5896 

724,028.34 

21.9654 


Although Congress authorized contracts for tube service in Baltimore, Md.; 
Cincinnati, Ohio; Kansas City, Mo.; Pittsburgh, Pa.; and San Francisco, Cal., 
no proposals were received by the department for service in those cities in 
response to the advertisement. 

In the city of Philadelphia, although the mileage contracted for, as recognized 
by orders issued by the department, is 7.35, there is an additional extension 
between Southwark Station to Station D, 0.8637 mile, which, with the line 
between the general post office and Southwark Station now in operation, make 
the total mileage contracted for 8.2137. In addition to this another extension 
has been recommended by a committee of three postal experts in July, 1908, 
from Station O via Fairhill Station to North Philadelphia Postal Station, a 
distance of about 1.72 miles; but contract has not been made for this last 
extension, the company not yet having agreed to it. This additional service, if 
contracted for, would raise the total mileage in Philadelphia to about 9.9337. 

In the city of Chicago the mileage not yet built (10.153) includes the line out 
of use between the general post office and Kinzie Station (1.77 miles). 

Mr. Murdock. As this system developed into various cities through 
the years from 1892 on, was there any material change in the method 
of transmitting this mail through the tubes? Did you enlarge the 
tubes ? 

Mr. Batcheller. The first line built in Philadelphia from the 
general post office to the East Chestnut Street Station was 6-| inches 
internal diameter. The extensions which followed that were 8J 
inches diameter. 

Mr. Murdock. Did you ever go above 8J inches in size ? 

Mr. Batcheller. There is a small amount of tube in Boston 10 
inches in diameter. It was originally built for the transmission of 
parcels, for commercial business. 

Mr. Murdock. Is it serviceable? 

Mr. Batcheller. That was converted into a mail system and is 
serviceable. 

Mr. Murdock. Then why should the standard type be fixed at 8J 
or 8 \ inches if you can make a 10-inch tube w ork ? 

Mr. Batcheller. It was decided back in 1897 that an 8-inch tube 
would be the most efficient size. Of course you can see the advan¬ 
tage of having uniformity in the tubes. It enables the carriers to be 

transferred from one line to another. . 

Mr. Murdock. What I am trying to arrive at is this: Where is the 

mechanical advantage in an 8-inch tube as against the 10-inch tube? 



































30 


PNEUMATIC-TUBE SYSTEM. 


Mr. Batcheller. That is a question that requires a great deal of 
consideration. If the tube is too small you can not transport all of 
the mail. On the other hand, if the tube is too large, there would 
be a great deal of the time when it would not be used, and its cost of 
construction would be greater. You must therefore decide upon an 
economical size; a size that is large enough to transport the mail, 
and at the same time will be used somewhere near its capacity during 
the busy hours of the day. If its capacity is much larger than 
necessary, then you have your tube standing idle for a larger portion 
of the time. 

Mr. Murdock. Do you mean to say that they would be busy a less 
portion of the day with the 10-inch tube ? 

Mr. Batcheller. If they were larger than they are now there 
would be a greater portion of the time that they would not be used 
to their maximum capacity. You must remember that the tubes are 
intended to expedite first-class mail, individual letters, as well as 
quantities of letters. Letters with special-delivery stamps on them 
are sent immediately. If there is no other mail to go a single letter 
is dispatched. It is most economical to have the carrier as near the 
size of the parcel to be sent as practicable. If a tube of 30 inches in 
diameter were to be used, and you wanted to send a single letter, you 
would have to dispatch it in a large car, which would obviously be 
uneconomical. 

Senator Smith. It would be more practical to have a size tube that 
would accommodate the business and escape the expense. 

Mr. Batcheller. The smaller the tube the more readily and 
quickly can the carriers be handled and dispatched. The quantity 
of mail dispatched from stations is often small. It is sufficient to 
fill, for example, a 30-inch carrier, whereas several 8-inch carriers 
will carry it. 

Senator Smith. Have you been in close touch with the operation 
of these tubes and the service being rendered to the Government ? 

Mr. Batcheller. I have been closely identified with the business 
from the very beginning. 

Senator Smith. Do you still believe that an 8-incli tube is practi¬ 
cally the best selection in size? 

Mr. Batcheller. I believe that an 8-inch tube is for most places 
the most efficient size of tube to use, particularly for connection to 
the postal stations, but there are undoubtedly places where a larger 
tube would be more advantageous. For example, between two railway 
stations in a large city where there is a considerable amount of transit 
mail. In that case it might be more economical to have a tube large 
enough to carry the mail in sack. There are probably some cases, 
where the general post office is a considerable distance from the rail¬ 
way station, where it would be advantageous to have a larger tube 
between them, but for the postal stations or branch post offices I 
believe that an 8-inch tube is the most efficient size. 

Mr. Murdock. The unit of shipment in the mail is a sack. It is 
not a letter, but a pouch of letters. As an engineer, do you think 
that it is impossible in the future that we may have a tube that will 
carry a sack? 

Mr. Batcheller. We have recently built a tube large enough to 
carry several sacks. It is located in Cambridge, and its operation 
was witnessed by Mr. Stewart only recently. 


PNEUMATIC-TUBE SYSTEM. 


31 


The Chairman. Will it be a success? 

Mr. Batcheller. Entirely so, I think I can say. The line is 
about a third of a mile long. We put up a building for a station 
and then laid the line with short curves of 50 feet radius, ascending 
and descending grades of 5 per cent, representing the worst con¬ 
ditions that would probably be met with in laying a line in the 
streets of our large cities. It has now been in operation for several 
weeks, and from the time the first dispatch was made its operation 
has been entirely satisfactory. 

Mr. Murdock. Then the standard tube of 8-inch is standard only 
as relates to first-class mail sent separately? 

Mr. Batcheller. The larger tube will supplement, not supplant, 
the 8-inch tubes. The 8-inch tubes will probably be used to connect 
the postal stations, and the larger tubes the post office to the rail¬ 
way stations. 

Mr. Murdock. Have you examined the tubes abroad, especially 
those in Paris? 

Mr. Batcheller. Yes, sir; I have. 

Mr. Murdock. What is the size of the Paris tubes? 

Mr. Batcheller. The largest are about 3 inches in diameter. 

Mr. Murdock. And they confine the use of tubes in Paris entirely 
to telegrams? 

Mr. Batcheller. Yes; or little special letters, written on a special 

form. 

Mr. Murdock. Are the tubes owned by the Government? 

Mr. Batcheller. I think they are. 

The Chairman. It is really a special-delivery letter used there, 
and I have often received them. Are there any other cities abroad, 
Mr. Batcheller, using such tubes ? 

Mr. Batcheller. London has quite an extensive system of tubes 
and 3 inches in diameter. They are used for forwarding tele¬ 
grams. 

The Chairman. How about Berlin and Vienna? 

Mr. Batcheller. Berlin has an extensive system of tubes, none 
of which is larger than 3 inches in diameter, and they are used, I 
believe, for forwarding special-delivery letters. 

The Chairman. Are the tubes mentioned by you controlled en¬ 
tirely by the Governments abroad ? 

Mr. Batcheller. Yes, sir. I was given an opportunity several 
years ago by the Government officials in Paris, Berlin, and London 
to inspect them. 

The Chairman. The system is very good in Paris. 

Mr. Batcheller. It is for telegrams or special letters, but in none 
of the cities abroad do they undertake to transport the regular let¬ 
ter mail by pnuematic tubes. 

Senator Smith. What is their system? I do not mean as to the 
tubes, but what is their system as to handling the mail ? 

Mr. Batcheller. By horses and carts or wagons. 

Senator Smith. They rely exclusively on that ? 

Mr. Batcheller. I think so. They may have recently adopted 
automobiles to some extent, but of that I have no knowledge. 

Senator Smith. It is a private conveyance ? 

Mr. Batcheller. Yes, sir. 


32 


PNEUMATIC-TUBE SYSTEM. 


Mr. Stewart. Is not the English Government now looking toward 
a contract for a car of some kind to run underground ? 

Mr. Batcheller. I have been told that they were, but I have no 
direct knowledge of the subject. I believe no contract has been 
made and no construction begun. 

The Chairman. I have some questions to ask, but I would rather 
they go over until to-morrow. 

STATEMENT OF MR. F. M. DELANO. 

The Chairman. Whom do you represent, Mr. Delano? 

Mr. Delano. The International Pneumatic Tube Co., which owns 
the Philadelphia system, which is operated separately from the 
American Tube Co. 

Mr. Powers. You will recall, Mr. Chairman, that I referred to 
Mr. Delano by saying that we represented all the plants except the 
Philadelphia plant, which is represented by Mr. Delano. 

Mr. Delano. Mr. Hayden has given you quite a long address from 
a financial standpoint of why they desire to sell the tubes to the 
Government. The reasons are the same with our company. In 
other words, with a 10-year contract it is impossible to finance new 
issues of stock and sell them. We would like the opportunity to 
make an offer of our company to your commission before you finally 
adjourn. I am not prepared at this moment to give any facts or 
figures, but I will see that some one is here from New York that can 
make a tender to you. 

Mr. Murdock. The Philadelphia Co. was the first one to construct 
pneumatic tubes? 

Mr. Delano. Yes. 

Mr. Murdock. Do you remember whether the first construction 
was done without any arrangement with the Government? 

Mr. Delano. I was not connected with the company at that time. 

Mr. Murdock. My recollection is that the first construction in 
Philadelphia was done without any previous arrangement with the 
Government; that after the construction of the tubes an arrange¬ 
ment was gone into with the department for an anual rental of some 
$3,000 a year, which was entirely inadequate; that later it was 
jumped to $10,000 and then took the present rental of $17,000. Do 
you say that the present rental of $17,000 is entirely inadequate? 

Mr. Delano. It is entirely inadequate. 

The Chairman. When does your contract expire with the Gov¬ 
ernment ? 

Mr. Delano. That I could not say. 

Senator Smith. Who will own it at the end of 10 years, if you 
are going to get back your property and the interest on your prop¬ 
erty during that time? 

Mr. Delano. Suppose the Government failed to renew its con¬ 
tract? Those tubes are built between two particular stations and 
can be used only by the Government for the transportation of mail. 
We might not be able to put it to any commercial use. 

Senator Smith. If your plant, though, was leased to the Gov¬ 
ernment, which would pay interest on your investment and return 
your property at the end of the lease, then your contract ought to 
provide that the Government would own it at the end of the lease. 


PNEUMATIC-TUBE SYSTEM. 


33 


Mr. Delano. \es; if it provided all those things on the principle 
of the New York subway, which provides that at the end of 15 years 
the city shall own the subway. 

The Chairman. Y ou would be satisfied if you had a 15-year 
contract ? 

Mr. Delano. If we had a 15-year contract and got back our prop¬ 
erty and a fair return on the money, then the Government owns the 
tubes at that time. 

Mr. Murdock. What annual rental would pay and amortize the 
Philadelphia Co.? 

Mr. Delano. I could not tell you without figuring that out. I am 
not thoroughly familiar with all the figures. 

Mr. Murdock. Your $17,000 annual rental pays vou an interest 
to-day? 

Mr. Delano. Yes. 

Mr. Murdock. What interest? 

Mr. Delano. I think it works out about 6 per cent on the amount 
of money involved. I could not tell you the exact figures. 

Mr. Murdock. As an investor, what deterioration do you see in 
your property? 

Mr. Delano. You must maintain a tube of that kind in the best of 
order to do the service, and out of the charges the tube is maintained. 
It is like a street railway company; the tracks are kept up and re¬ 
placed from year to year, and at the end of 10 years it ought to be 
in proper condition as it was when it started, provided proper main¬ 
tenance charges were set aside to take care of it. 

Mr. Murdock. Are you prepared to give to the stenographer for 
the commission a financial statement of vour company ? 

Mr. Delano. I am not to-day. 

Mr. Murdock. Will vou do that later? 

•' 

Mr. Delano. I shall be glad to do so. 

Mr. Murdock. I wish you would, please, because we want that in¬ 
formation ; a good deal on the line followed by Mr. Hayden to-day. 

Mr. Delano. I believe that I stated that we kept our tubes in re¬ 
pair from year to year and replaced anything that needed repair¬ 
ing. There is practically nothing that needs repairing outside of 
keeping the property up in good condition. I could not testify as 
to that point, because I am not an engineer, and have nothing to do 
with the practical operation of the company. There is, however, no 
wear and tear on the tubes. 

The Chairman. What is you position with the company? 

Mr. Delano. I am interested in the company and I am a director 
of the company, but I never have had anything to do with the actual 
operation of the company. 

The Chairman. The reason I asked the question was this: We 
may at some time wish to send for some one to give us certain in¬ 
formation. In such an event, for Avhom should we send? 

Mr. Delano. One of the officers of the company, possibly the presi¬ 
dent, or some one of the gentlemen in Philadelphia. 

The Chairman. Will you kindly write us a letter, giving the 
names of such gentlemen 'as it would be well to call, so that we may 
have that information in case it is necessary ? 


78419—13 


o 

V> 



34 


PNEUMATIC-TUBE SYSTEM. 


Mr. Delano. I will be glad to do so. 

The Chairman. I mean particularly some one in charge of the 
operations and finances. 

Mr. Delano. Yes, sir; and one with authority to talk, I suppose. 

The Chairman. Yes; if you will submit such a letter, we will 
appreciate it. 

Mr. Delano. I shall be glad to do so. 

Thereupon, at 5 o’clock p. m., the commission adjourned until 10 
o’clock a. m., December 3, 1912. 

LIST OF PATENTS AND COPIES OF FRANCHISES OF THE AMERICAN 

PNEUMATIC SERVICE CO. 


Post Office Department, 

Second Assistant Postmaster General, 

I Y ashing ton, December 9, 1912. 

Hon. Simon Guggenheim, 

Chairman Pneumatic Tube Commission . United States Senate. 

Sir: I hand you herewith letter from William TI. Ames, president of the 
American Pneumatic Service Co., transmitting list of patents and copy of letter 
from the company’s patent attorney and copies of franchises in the various 
cities where their tube plants are installed. These were submitted to me in 
response to a request which I made at the recent hearings. 

Very respectfully, 

Joseph Stewart, 

Second Assistant Postmaster General. 


American Pneumatic Service Co., 

Boston, December 5, 1912. 

Hon. Joseph Stewart. 

Second Assistant Postmaster General, Washington, D. C. 

Sir: In accordance with your request, I herewith inclose a list of our patents, 
a copy of letter from our patent attorney, and copies of our franchises in the 
various cities where our tube plants are installed. 

If there is any other information I can give you or the commission I shall 
be pleased to furnish it. 

Respectfully, Wm. H. Ames, President. 


The patents of the American Pneumatic Service Co. are set out in the fol¬ 
lowing lists: 

By an instrument of December 24, 1907, the New York Pneumatic Service 
Co. acquired from the American Pneumatic Service Co. all right, title, and in¬ 
terest under the following patents (and all others hereafter owned or con¬ 
trolled) for the city of New York. 

By an instrument of March 25, 1903, the Chicago Postal Pneumatic Tube Co. 
acquired from the American Pneumatic Service Co. all right, title, and interest 
under the following patents (and all others hereafter owned or controlled) for 
the State of Illinois: 



No. 

Date. 

Fordyce.. 

627181 

June 20,1899 

Do. 

635434 

Oct. 24,1899 

Townsend. 

654690 

July 31,1900 

Fordyce. 

666747 

Jan. 29,1901 

Johnson. 

681057 

Aug. 20.1901 

Cowley. 

683022 

Sept. 24,1901 

Pike. 

683140 

.do. 

Do.. 

683141 

.do. 

Cowley. 

683387 

.do. 


Description. 


Pneumatic carrier. 

Terminal for pneumatic tubes. 

Pneumatic dispatch tube. 

Carrier for pneumatic dispatch tubes. 

Pneumatic tube apparatus. 

Pneumatic dispatch tube apparatus. 

Terminal for pneumatic dispatch tube apparatus. 
Terminal for pneumatic dispatch. 

Pneumatic dispatch tube apparatus. 





























exhibit b. 




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PLAN OF SYSTEM 
OF 

NEW YORK PNEUMATIC SERVICE CO 

FEB. I st , 1911. 

Sca/e: //. n . • 2500ft 


O-A 57 


78419—13. (To face page 34.) No. 1 
























































































































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EXHIBIT D. 



— indicates two pneomatic tubes 

'£) INDICATES POWER 9TATI0N 


PLAN OF SYSTEM 

OF 

ST. LOUIS PNEUMATIC TUBE CO. 

FEB.I ST ,I9II. 

SCALE !INeH*ZAOOrT. 

78419—13. (To face page 34.) No. 3 

































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PNEUMATIC-TUBE SYSTEM. 


35 



No. 

Date. 

Pike . 

684715 

Oct. 15.1901 

Cowley. 

685674 

Oct. 29,1901 

Fordyce. 

689043 

Dec. 17.1901 

Do. 

698830 

Apr. 29,1902 

Forslund. 

701869 

June 10,1902 

Danley. 

703120 

June 24.1902 

Cowley. 

706639 

Aug. 12,1902 

Burton. 

722562 

Mar. 10,1903 

Do. 

726022 

Apr. 21,1903 

Blanchard. 

726017 

do 

Pike. 

726097 

do 

Stoddard. 

742513 

Oct. 27,1903 

Do. 

742514 

do 

Do. 

742515 

do 

Do. 

742516 

do 

Do. 

742517 

do 

Burton . 

742390 

do 

Stoddard. 

758569 

Apr. 26,1904 

Do . 

760658 

Mav 24,1904 

Do . 

760659 

. do 

Burton . 

760680 

do 

Pike . 

760701 

do 

Burton . 

768030 

Aug. 23,1904 

Do . 

768031 

. do 

Stoddard . 

772973 

Oct. 25,1904 

Do. 

775949 

Nov. 29.1904 

Burton . 

779638 

Jan. 10.1905 

Do . 

780595 

Jan. 24,1905 

Do . 

782106 

Feb. 7,1905 

toddard . 

783151 

Feb. 21,1905 

ke . 

784225 

Mar. 7,1905 

Do . 

790456 

Mav 23.1905 

Do. 

790457 

.do.. 

>ddard. 

7962611 

Aug. 1,1905 

Do. 

800884 

Oct. 3,1905 

Do . 

805168 

Nov. 21,1905 

Do . 

842352 

Jan. 29,1907 

Do . 

842353 

.do 

Do . 

842354 

. . .do 

Do. 

842355 

.do 

Do. 

869337 

Oct. 29.1907 

Do. 

869338 

. ...do 

Do. 

880595 

Mar. 3,1908 


886402 

Mav 5,1908 

v.n. ling . 

662771 

Nov. 27,1900 

C' >dey . 

648853 

May 1,1900 

irdus . 

661363 

Nov. 6,1900 

Do . 

669886 

Mar. 12,1901 

Do . 

669887 

. .do 

Do . 

669888 

. do. 

Do . 

669889 

. do. . 

Do . 

669890 

. do . 

Do . 

669891 

. do. . 

Do . 

669892 

. do. ., 

Blood . 

690920 

Jan. 14,1902 

Do . 

711196 

Oct. 14.1902 

Do . 

693366 

Feb. 18.1902 


Description. 


Complete pneumatic dispatch tube terminals. 
Transmitter for use in pneumatic dispatch tube appa^ 
ratus. 

Pneumatic dispatch tube system. 

Pneumatic dispatch apparatus. 

Pneumatic dispatch tubes. 

Pneumatic carrier system. 

Pneumatic dispatch apparatus. 

Carrier for pneumatic dispatch tube apparatus. 
Pneumatic carrier. 

Lock for pneumatic dispatch tube carriers. 

Pneumatic carrier. 

Pneumatic dispatch apparatus. 

Do. 

Do. 

Do. 

Do. 

Pneumatic carrier. 

Pneumatic dispatch apparatus. 

Circuit breaker. 

Pneumatic dispatch apparatus. 

Pneumatic carrier. 

Do. 

Do. 

Pneumatic dispatch apparatus. 

Do. 

Do. 

Carrier for pneumatic dispatch apparatus. 

Do. 

Pneumatic carrier. 

Pneumatic dispatch apparatus. 

Do. 

Pneumatic dispatch tubes. 

Do. 

Carrier for pneumatic dispatch tube apparatus. 
Pneumatic dispatch apparatus. 

Do. 

Carriers for pneumatic dispatch apparatus. 

Pneumatic dispatch apparatus. 

Carriers. 

Do. 

Pneumatic dispatch tube apparatus. 

Do. 

Do. 

Cushioning devices for pistons. 

Pneumatic dispatch apparatus. 

Pneumatic tubes. 

Draining mechanism for tubular dispatch.systems. 
Tubular dispatch apparatus. 

Receiving mechanism for tubular dispatch system. 

Do. 

Pneumatic transit apparatus. 

Carrier for tubular dispatch systems. 

Receiving apparatus for tubular transit system. 

Tubular transit apparatus. 

Do. 

Sending apparatus for tubular dispatch system. 
Receiving apparatus for pneumatic dispatch apparatus. 


Under the II Blood and Bogardus patents the American Pneumatic Service 
Co. owns all rights, except for the State of New York. 

In New York City the New York Pneumatic Service Co. (assignee of the 
Tubular Dispatch Co.) has a license. In the State of New York (except New 
York City) the New York Mail & Newspaper Transportation Co. has a license. 



No. 

Date. 

Bogardus, Collis, and 

709434 

Sept, 16,1902 

Powell. 



Collis and Powell. 

714865 

Dec. 2,1902 

Powell. 

737271 

Aug. 25.1903 


Description. 

Tubular dispatch apparatus. 

Tubular dispatch system. 

Receiving apparatus for tubular dispatch systems. 


Under the above three entitled patents Powell gave a license to the New T York 
Mail & Newspaper Transportation Co. and the Tubular Dispatch Co., their sue- 






























































































































36 


PNEUMATIC-TUBE SYSTEM. 


cessors and assigns, for pneumatic lines “now owned’’ (May 2, 1903) within 
the State of New York. 


International Pneumatic Service Go. patents. 



No. 

Date. 


No. 

Date. 

Fordyce. 

624202 

May 2,1899 
Apr. 25,1899 
.do. 

Fordyce. 

570163 

Oct. 27,1896 
Jan. 26,1897 

Bostedo. 

623509 

Do. 

575883 

Do 

623510 

Bostedo. 

583246 

May 25,1897 
Feb. 22,1898 

Do. 

597138 

Jan. 11,1898 

Fordyce. 

599557 

Danley. 

623520 

Apr. 25,1899 
July 7,1896 
Aug. 4,1896 
Oct. 27,1896 

Gillespie. 

617417 

Jan. 10,1899 

Bostedo. 

563550 

Fordyce. 

624201 

May 2, 1899 
Aug 31,1897 
June 20,1899 

Do. 

564965 

Bostedo. 

588948 

Fordyce. 

570160 

Fordyce. 

627181 

Do.. 

570161 

.do . .. 

Do. 

635434 

Oct. 24,1899 

Do. 

570162 

.do. 



The American Pneumatic Service Co. owns the above company. 

The Chicago Postal Pneumatic Tube Co. has a license from the International 
Pneumatic Service Co. under the above patents for the State of Illinois, ex¬ 
cepting for use inside stores and buildings to carry cash, memoranda. 


Lake Street Manufacturing Co. patents. 



No. 

Date. 

Forslund. 

682408 

Sept. 10,1901 
May 22,1900 

Do. 

650107 



The American Pneumatic Service Co. owns the above company. 

The Chicago Postal Pneumatic Tube Co. has a license from the Lake Street 
Manufacturing Co. under the above patents for the State of Illinois, excepting 
for use inside of stores and buildings to carry cash, memoranda. 

The following patents have issued to the American Pneumatic Service Co. 
since 1908: 


Stoddard... 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Waterhouse 

Do. 

Jennings... 
W dterhouse 
Emerson... 
Fordyce 

Do. 

Do. 

Do. 

Do. 

Stoddard... 
Do. 


No. 


Date. 


Description. 


914083 

914084 

923308 

923458 

923459 

962796 

962797 

975903 

974617 

974618 

984816 

985957 

958240 

1013148 

1040302 

1044876 

1044877 

1044878 

992822 

992823 


Mar. 2,1909 

-do. 

June 1,1909 

_do. 

_do. 

June 28,1910 

_do. 

Nov. 15,1910 
Nov. 1,1910 

-do. 

Feb. 21,1911 
Mar. 7,1911 
May 17,1910 
Jan. 2,1912 
Oct. 8,1912 
Nov. 19,1912 

_do. 

_do. 

May 23,1911 
-do. 


Pneumatic dispatch tube system. 

Dispatch tube apparatus. 

Pneumatic dispatch tube system. 

Pneumatic dispatch apparatus. 

Pneumatic dispatch tube system. 

Carrier for pneumatic tubes. 

Pneumatic tube apparatus. 

Pneumatic dispatch tube apparatus. 

Receiving apparatus for pneumatic dispatch systems. 
Sending mechanism for pneumatic dispatch apparatus 
Carriers for pneumatic dispatch systems. 

Receiving apparatus for pneumatic dispatch systems 
Carriers for pneumatic dispatch tube apparatus. 
Pneumatic dispatch apparatus. 

Pneumatic dispatch tube apparatus. 

Do. 

Do. 

Do. 

Pneumatic dispatch apparatus. 

Do. 


The following patents were acquired by the American Pneumatic Service Co. 
by an assignment from the United Store Service & Tube Co., recorded June 3, 
1910, liber V-84, page 123: 



No. 

Date. 


No. 

Date. 

Fordyce. 

873740 

881980 

Dec. 17,1907 
Mar. 17,1908 

Jennings.. . 

899599 

906342 

Sept. 29,1908 
Dec. 8,1908 

Waterhouse. 

Waterhouse. 


























































































































PNEUMATIC-TUBE SYSTEM. 


37 


The following patents were acquired by the American Pneumatic Service Co. 
by an assignment from the Taisey Pneumatic Service Co., recorded February 
6. 1911. liber L-86. page 85: 



No. 

Date. 


No. 

Date. 

Bemis & Collins. 

Taisey. 

720804 

653044 

690675 

701522 

Feb. 17,1903 
July 3,1900 
Jan. 7,1902 
June 3,1902 

Taisey. 

Do 

705884 

711367 

729448 

975501 

July 29,1902 
Oct. 14,1902 
May 26,1903 
Nov. 15,1910 

Do. 

Do 

Do. 

Bemis. 




The following under an assignment from the same company, recorded Feb¬ 
ruary 6, 1911, liber PI-86, page 205: 



No. 

Date. 

Bemis. 

696305 

Mar. 25,1902 





The following under an assignment from the same company, recorded April 
19, 1911, liber P-86, page 270: 



No. 

Date. 

Bemis. 

712478 

712479 

785468 

Nov. 4,1902 
Do. 

Mar. 21,1905 

Do.. 

Do.. 



The following under an assignment from the same company, recorded Sep¬ 
tember 25, 1911, liber R-87, page 420: 



No. 

. Date. 

Collins. 

876859 

Jan. 14,1908 





The following patents were acquired by the American Pneumatic Service Co. 
by an assignment from the Air Line Carrier Co., recorded July 24. 1911, liber 
L-87, page 383: 



No. 

Date. 


No. 

Date. 

CJipe . . 

609275 

Aug. 16,1898 
Apr. 25,1899 
Mar. 13,1900 

Gipe. 

660100 

Oct. 23, 1900 

Do 

623899 

* Do. 

723457 

Mar. 24,1903 
Sept. 26,1905 

Do 

645505 

Thompson. 

800416 

Do. 

660099 

Oct. 23,1900 




The following patent was assigned from the same company, recorded Sep¬ 
tember 25, 1911, liber J-88, page 23: 



No. 

Date. 

Th nm nsnn . 

958782 

Mav 24.1910 




















































































38 


PNEUMATIC-TUBE SYSTEM. 


The following patents were acquired by the American Pneumatic Service Co. 
by an assignment from the National Pneumatic Service Co., recorded January 
22. 1912, liber Q-88, page 480: 



No. 

Date. 

Forslund. 

652537 

June 26,1900 

Burton. 

653438 

July 17,1900 
Feb. 5,1901 

Do. 

667185 

Forslund. 

667209 

Do. 

Bitner. 

677928 

July 9,1901 
Sept. 10,1901 
Sept. 17,1901 
Nov. 11,1902 

Woltman. 

682374 

Do. 

682375 

Churchill. 

713557 

Do. 

713059 

Do. 




No. 

Date. 

Churchill. 

713060 

Nov. 11,1902 

Ash & Woltman. 

720395 

Feb. I0;i903 
Mar. 31,1903 

Churchill. 

723829 

Do. 

726815 

Apr. 28; 1903 
Do. 

Do . 

726816 

Steinbock. 

730715 

June 9,1903 

Churchill. 

739049 

Sept. 15; 1903 
Nov. 3,1903 

Do. 

743060 


The following patents were issued to the Bostedo Pneumatic Tube Co. (no 
record appears on the books we have of any assignment to the American Pneu¬ 
matic Service Co.) : 



No. 

Date. 


No. 

Date. 

Bostedo. 

559095 

736680 

Apr. 28,1896 
Aug. 18,1903 

Foyer. 

750356 

724688 

Jan. 26,1903 
Apr. 17,1904 

Do. 

F ordyce. 




The following two patents issued to Foyer show no record of any assignment: 



No. 

Date. 


No. 

Date. 

Foyer. 

652960 

July 3,1900 

Fover 

669491 

Mar. 5,1901 




Batcheller Pneumatic Tube Co. patents. 

[American Pneumatic Service Co., sole licensee, with exceptions as noted.] 


Batcheller 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 

Do.... 


Num¬ 

ber. 

Date. 


Num¬ 

ber. 

567067 

Sept. 1,1896 

Batcheller. 

648375 

568291 

Sept, 22,1896 

Do. 

657076 

585647 

July 6,1897 

Do. 

657077 

585498 

June 29,1897 

Do. 

657078 

590181 

Sept. 14,1897 

Do. 

657079 

595754 

Dec. 21,1897 

Do. 

666175 

595755 

Do. 

Do. 

700607 

595756 

Do. 

Do. 

706291 

602422 

Apr. 19,1898 

Do. 

707071 

623968 

May 2,1899 

Do. 

719421 

623969 

Do. 

K. E. Stuart. 

721476 

623970 

Do. 

Batcheller. 

722667 

623971 

Do. 

Do.. .. 

746266 

623972 

Do. 

Do. 

746267 

623973 

Do. 

Do. 

749152 

632690 

Sept, 12,1899 

Do. 

777328 


Date. 


May 1,1900 
Sept. 4,1900 

Do. 

Do. 

Do. 

Jan. 15,1901 
May 20,1902 
Aug. 5,1902 
Aug. 19,1902 
Feb. 3,1903 
Feb. 24,1903 
Mar. 17,1903 
Do. 

Do. 

Jan. 12,1904 
Dec. 13,1904 


EXCEPTIONS TO LICENSE GIVEN BY BATCHELLER PNEUMATIC TUBE CO. TO AMERICAN 

PNEUMATIC SERVICE CO. 

The rights of the American Co. do not cover the following districts: 

State of Pennsylvania (except Pittsburgh district). 

State of West Virginia. 

“ Camden district,” New Jersey. 

City of New York. 

The New York Mail & Newspaper Transportation Co. and the New York 
Pneumatic Service Co. (assignee of Tubular Dispatch Co.) each has a license 
in the city of New York under the Batcheller Pneumatic Tube Co. patents. 



















































































































PNEUMATIC-TUBE SYSTEM. 


39 


I he American Pneumatic Service Co. acquired a license under the following 
patents from Stuart. These patents were subsequently assigned to the Pearsall 
Pneumatic Tube & Power Co., under date of November 23, 1905; assignment 
recorded November 24, 1905, liber V-72, page 368; the license having been 
given by Stuart to the American Pneumatic Service Co., before title actually 
passed to the Pearsall Pneumatic Tube & Power Co., under date of November 1, 
1905. 



No. 

Date. 


No. 

Date. 

Stuart. 

Do. 

Do. 

713924 

718740 

744814 

Nov. 18,1902 
Jan. 20,1903 
Nov. 24,1903 

Stuart. 

Do. 

744815 

789888 

Nov. 24,1903 
May 16,1905 


The American Pneumatic Service Co. acquired a license under the following 
patents from the Pearsall Pneumatic Tube & Power Co. under date of No¬ 
vember 1, 1905; license recorded in liber J-G4, page 13: 



No. 

Date. 


No. 

Date. 

Bavier & Hawkes. 

658102 

657886 

658103 

Sept. 18,1900 
Sept. 11,1900 
Sept. 18,1900 

Pearsall 

669485 

673725 

686680 

Mar. 5,1901 
May 7,1901 
Nov. 12,1901 

Pearsall. 

Do 

Bavier & Hawkes. 

Do 




The American Pneumatic Service Co. acquired a license under the following 
patents from the Pearsall Pneumatic Tube & Power Co. under date of July 22, 
1907; license recorded August 24, 1907, liber W-76, page 479 : 



No. 

Date. 


No. 

Date. 

Pearsall. 

690894 

Jan. 7,1902 

Pearsall 

694324 

Feb. 25,1902 




The American Pneumatic Service Co. acquired a license under the following 
patents from the Pearsall Pneumatic Tube & Power Co. under date of July 22. 
1907; license recorded August 24, 1907, liber L~77, page 240: 



No. 

Date. 


No. 

Date. 

Batcheller. 

808623 

840464 

Jan. 2,1906 
Jan. 8,1907 

Batcheller. 

840465 

840194 

Jan. 8,1907 
Jan. 1,1907 

Do. 

.do. 




The following two patents were licensed as applications under serial Nos., 
respectively, 251,208 and 251,209 : 



No. 

Date. 


No. 

Date. 

Batcheller,... 

862601 

Aug. 6,1907 

Batcheller. 

862696 

Aug. 6,1907 




The American Pneumatic Service Co. acquired a license under the following 
patents from Bemis, recorded April 19, 1911, liber P-86, page 270: 



No. 

Date. 


No. 

Date. 

Bernis 

812162 

Feb. 6,1906 

Bemis. 

803388 

Oct. 31.1905 

















































































































40 


PNEUMATIC-TUBE SYSTEM. 


Washington, D. C., Tuesday , December 3, 191ft. 

The commission met at 10 o’clock a. m. 

Present: Senator Simon Guggenheim (chairman), Representative 
Victor Murdock, and Hon. Joseph Stewart, Second Assistant Post¬ 
master General. 

The Chairman. I think Mr. Batcheller, who Avas before the com¬ 
mission yesterday afternoon, has something further to say. If so, 
we shall be glad to hear him now. 

STATEMENT OF MR. B. C. BATCHELLER—Continued. 

Mr. Batcheller. In my testimony yesterday I said something 
about the 8-inch tube as being the standard size tube, etc. I wish to 
make a further statement in regard to that this morning. The policy 
of the American Pneumatic Service Co. has been to build tubes of 
any size that the Government requires. It is not limited to any par¬ 
ticular size, 8-inch tubes or any other size. The size of tubes that 
was adopted for mail transportation in the various cities was fixed 
by the Post Office Department, through their commission, which was 
appointed, if I remember correctly, in 1897, and that action was 
again confirmed by the commission of 1901. So that the size of 
tubes that has become the standard size for the transportation of 
letters was arrived at by the Post Office Department and not by the 
company. 

There are certain advantages in the 8-inch tubes which I did not 
point out in my testimony yesterday and which I would like to 
refer to to-day. One particular point is the continuous manner in 
which the mail can be transported through an 8-inch tube. In other 
words, the unit of a packet of letters is small, and the mail is kept 
going almost continuously. On most of the lines in the New York 
system, which is the largest, from 5 o’clock in the morning until 11 
o’clock at night there is scarcely a moment when there are no carriers 
in transit between any two stations. That means that the mail is not 
accumulating as it would be if it had to be transported in sacks. If 
it had to be transported in sacks the mail would have to accumulate 
in the stations until a sufficient quantity was collected for a sack, or 
until a certain period had elapsed. During the intervening period the 
tubes would not be in use. It is for that reason that you get so much 
higher efficiency with an 8-inch tube than you would, for example, 
with a 30-inch tube. 

Mr. Stewart. A 30-inch tube, however, or a larger-sized tube than 
the 8 inch, would be very useful in the transmission of mail in bulk, 
Mr. Batcheller? 

Mr. Batcheller. I recognize that there are certain places where 
there would be advantages in having a larger sized tube; for example, 
to a railway station where trains leave at fixed times. The mail for 
these trains must necessarily accumulate somewhere. It can not leave 
until the time for the departure of the train. Under those circum¬ 
stances there would be certain advantages in having a larger sized 
tube, but to the postal stations I think there is an efficiency in the 
smaller size that could not be secured with the larger size. 

Mr. Stewart. I suppose at some proper time you will be able to 
give us comparative figures on the cost of construction and operation 


PNEUMATIC-TUBE SYSTEM. 


41 


of the 8-inch-tube system and the system with reference to which 
you have an experimental plant in Boston? 

Mr. Batcheller. I should be very glad to give you any figures that 
I can. One other word in regard to the 8-inch system. Of course 
there are times and places where congestion occurs in the 8-inch-tube 
lines. For example, where several lines converge upon a single line, 
and particularly during the rush hours at night, when the mail is 
very heavy. But the tubes, as a whole, are not used to anything like 
their full capacity. The tubes to the postal stations could carry a 
much larger quantity of mail than they are carrying at the present 
time. The carriers might in many instances contain many more let¬ 
ters and they could be sent more frequently. There are places, how¬ 
ever, and hours when the lines become somewhat congested. 

Mr. Stewart. There are times, of course, when the amount of mail 
to be dispatched is too great to be accommodated by the 8-inch 
tubes. Then, we could use a larger tube to greater advantage. 

Mr. Batcheller. Yes, sir; particularly if you have a trunk line 
to take mail directly through to important points. 

Mr. Stewart. We found, for instance, when we were negotiating 
for that tube to the Hudson Terminal that the 8-inch tube would 
not carry the mails that we had to transport there. We had to put 
on wagon service besides. So, between large centers, like the New 
York Central and the Pennsylvania Stations in New York, if we had 
a system of tubes by which we could transport mail in bulk there 
would be a large quantity of the mail that we could take off the 
wagon service and send it bv that means. 

Mr. Batcheller. The system north of Forty-second Street, New 
York, serves a number of postal stations, and I think there that the 
8-inch tube has ample capacity to handle the mail at all hours of the 
day. South of Forty-second Street two 8-inch-tube lines, one extend¬ 
ing down the West Side and the other down the East Side, I think 
would have ample capacity at all times to transport the mail of the 
stations along those lines, but they are used during certain hours of 
the day for sending mail from the general post office to the railway 
stations, and then it is impossible for the stations along the line to 
get off their mail promptly. Now, if there were one or two trunk 
lines—I think one would be sufficient—between the general post 
• office and the new post office at the Pennsylvania station and the 
Grand Central Depot of a larger capacity than the 8-inch tube, then 
I think the present 8-inch tubes would handle all of the station mail, 
and the trunk lines would take care of the mail going to the railway 
stations. 

I want to say a word or two about depreciation of the lines. Of 
course all machinery wears more or less. It has to be repaired, and 
if the cost of those repairs were not charged to expense it would 
properly be a subject of depreciation. Let me first speak of the 
tube itself. We find from experience that there is little or no wear 
on the interior of the tubes due to the carriers traveling through 
them. The carrier bearing rings are made of much softer material 
than the tubes, so that the wear comes almost entirely on the car¬ 
rier. In fact, tubes that have been down for 10 or 12 years, when 
taken up show no appreciable wear. Some of the bends that were put 
in originally were brass. Those wore out quickly, but were replaced 

bv cast-iron bends, which are more durable, and the cost of making 
« ' 


42 


PNEUMATIC-TUBE SYSTEM. 


that change lias been charged to expense. So the tube lines are to 
day better than they were when they were built. Wherever the 
tubes have broken they have been replaced, and the expense of that 
replacing has been charged to expense. So far as the tube lines are 
concerned they have appreciated in value rather than depreciated. 
We sometimes have occasion to take up a tube. We examine it and 
clean it and probably put it back as a new tube in the line. 

Mr. Stewart. Do you put the same tube back ? 

Mr. Batcheller. Yes, sir. 

Mr. Stew t art. And you find no appreciable depreciation of it ? 

Mr. Batcheller. We find no appreciable depreciation, except the 
brass bends that I spoke of. which have been replaced by cast-iron 
bends. 

Mr. Stewart. Have those bends been entirely replaced by cast- 
iron ones? 

Mr. Batcheller. I think there is only one, or possibly two, brass 
bends left in the four cities. They have practically all been re¬ 
placed. The carriers are subjected to hard wear. They are re¬ 
placed with new carriers about once a year, and the cost of replacing 
the carriers is charged to expense; so that there is no depreciation 
of carriers. 

Now, in regard to terminal machinery. Of course, it occasionally 
gets broken, becomes w r orn, and has to be repaired. From time to 
time this machinery is replaced in part, or entire machines are 
put in, so that the system is maintained in a better condition than 
it was originally. The new T machines that are put in are frequently 
of a later design and of an improved type. The same thing can be 
said with regard to the power machinery. The system, as a whole, 
is appreciating in value in the same manner in which a railroad ap¬ 
preciates because improved apparatus is used. 

Mr. Stewart. Are you familiar with this statement that was sub- 
mitted by Mr. Hayden yesterday ? 

Mr. Batcheller. No, sir; I am not familiar with it. 

Mr. Stewart. Just note this item of depreciation in the table 
[handing Mr. Batcheller the statement referred to]. Do you know 
what they represent ? 

Mr. Batcheller. No; I do not. I have not examined it. Of 
course, the subject of depreciation is largely a question of bookkeep^ • 
ing. There is wear and tear, to be sure, but if that is charged to 
expense and the parts are replaced and new 7 or improved machinery 
substituted, then the system is getting better rather than worse. 

Mr. Powders. I will sav for your information, Mr. Stewtart, that 
that depreciation charged there is depreciation on the Chicago plant 

bv reason of limited franchise. 

%/ _ 

Mr. Stew 7 art. That relates altogether to the Chicago plant and 
has reference to the limited franchise? 

Mr. Powers. Yes, sir. 

The Chairman. Mr. Batcheller, how many miles of pneumatic 
tube are operated by your companies in each of the four cities— 
New York, Chicago, Boston, and St. Louis? 

Mr. Batcheller. In New 7 York and Brooklyn the actual mileage 
is 27.1290; the official 27.1189. There is a slight difference there 
because the contract limits the amount of mileage that can be paid 
for. In Chicago the mileage of double tubes is 9.6017; the actual 


PNEUMATIC-TUBE SYSTEM. 


43 


and the official are the same. In Boston the double mileage is 7.0117 
actual; the official is 6.7740. In St. Louis the actual mileage is 
1.0880, and the official mileage is 1.9465. The difference is due to a 
recent change made in the length of one of the lines which has not yet 
been officially recognized by the Post Office Department. The total 
actual double mileage is, therefore, 45.7304, and the official 45.4411. 

The Chairman. Will you kindly explain the diameter of the 
tubes ? 


Mr. Batciieller. The diameter of the tube is 8-J inches, actual, 
except for a small amount of tubing in Boston, which is 10 inches in 
diameter. At the bends it is made slightly larger. 

The Chairman. Can you describe the construction of the tube- 
for the benefit of the commission ? 

Mr. Batcheller. The straight tubing is made of cast iron, like 
ordinary water pipe, with a bell cast upon one end and a bead upon 
the other. The joints are made by entering the bead end into the 
bell and caulking with yarn and lead. The interior of the tubes is 
bored smooth and accurate in diameter. The bends are made in 
short curvey sections of cast iron flanged and -bolted together. Their 
diameter is 8§ inches inside. They are made smooth on the interior 
b}^ a process of grinding. The stations are equipped with what we 
term terminal apparatus. It consists of two pieces of apparatus, a 
transmitter and a receiver. The former is a device whereby the car¬ 
riers which contain the mail are passed into the tube without allow¬ 
ing the compressed air in the tube to escape. There are two gates. 
The carrier passes the first gate, which closes after it; then the second 
gate opens, and the carrier enters the tube. The receiver is a device 
that brings the carriers to rest when they arrive in a station and 
discharges them onto a table. This device contains a gate that 
closes the end of the tube, permitting the air to flow to one side 
through a by-pass. 

The carriers are brought to rest by an air cushion that prevents 
shock. Then the gate opens and they are allowed to slide out on the 
table, where they can be taken up by the tube operator and emptied. 
The receivers are of two types. For a power station they have but 
one mite. At intermediate stations it is necessarv to have two 
gates, in order that one may close behind the carrier before the sec< 
ond one opens and thus prevent the escape of compressed air. The 
power machinery consists of an air compressor which may be either 
a rotary or a reciprocating machine, driven usually by an electric 
motor. In some instances steam engines are used to drive the air 
compressors, but in most of the stations electric motors are used. 
The carriers consist of steel cylinders about 21 inches in length, 7 
inches in diameter, inside measurement, closed tightly at the front 
end, provided with a hinged and locking lid at the rear end, where 
the mail is put in and taken out, and surrounded by two bearing 
rings on which the carrier travels as it goes through the tube. These 
are the essential features of the pneumatic-tube system as used to-day 
for the transportation of the United States mail. 

The Chairman. How many stations have power plants? 

Mr. Batcheller. In the four cities there are 18. 

The Chairman. I presume some of the stations have no power 
plants at all ? 


44 


PNEUMATIC-TUBE SYSTEM. 


Mr. Batcheller. No, sir; there are 46 stations altogether, of which 
18 have power plants. 

The Chairman. Where do these stations obtain their steam? 

Mr. Batcheller. Steam is used only in the general post offices in 
New York, Brooklyn. Boston, Chicago, and St. Louis, and at Madi¬ 
son Square, in New York. In the general post offices steam is ob¬ 
tained from the boilers of the building. At Madison Square station, 
New York, steam is purchased from the Metropolitan Life Insurance 
Co., from their power plant in the building. 

The Chairman. Do all the power stations use electric power? 

Mr. Batcheller. Not all of them. The greater number of them 
use electric power. 

The Chairman. Where does the electric power come from? 

Mr. Batcheller. It is usually purchased from the public-service 
companies in the respective cities. 

The Chairman. What are your rights in the streets ? 

Mr. Batcheller. In New York City we have a charter granted 
by the legislature of the State of New York, which gives the right 
to lay our tubes in any and all streets of that city, with the approval 
of the local authorities. In the other cities the franchises, I believe, 
have been granted by the local authorities. 

The Chairman. Can those rights be transferred to the Govern¬ 
ment ? 

Mr. Batcheller. In the case of Government ownership I think 
that Mr. Stewart in the report of 1908 expresses the opinion that 
the Government has the right in the streets as post roads. 

Mr. Stewart. That is correct, and the officers of the several cities 
practically admitted that in the correspondence which is set forth in 
this prior report. 

Mr. Chairman, I think it might be well, in that connection, for the 
company to submit a specific statement in writing, describing the 
nature, character, and extent of their franchises in the several cities. 
T do not remember whether that was set forth particularly in the 
previous report or not. 

Mr. Powers. That, Mr. Chairman, we shall be glad to do and we 
will submit it with copies of the franchises and you will have them 
for your record. We have not. that information with us at this 
time. 

The Chairman. Suppose the Government should purchase the 
tubes, would a staff be required to maintain them, in your judgment? 

Mr. Batcheller. I think they should have a staff : yes, sir. 

The Chairman. What would the staff consist of? 

Mr. Batcheller. I think there should be a superintendent of tubes 
in each city. He should have one or more inspectors to inspect the 
stations, machinery, tubes, etc. 

The Chairman. Would that be a large expense? 

Mr. Batcheller. No, sir; I do not think so. 

The Chairman. Have you any idea about what it would be an¬ 
nually, say for each city; and can you give us just a rough estimate? 

Mr. Batcheller. Mr. Emerson can probably answer that question 
better than I. and I would like to have him talk to you upon that 
subject. 

Mr. Emerson. At the present time, Mr. Chairman, we have, 
roughly speaking. 200 men operating these different systems. There 


PNEUMATIC-TUBE SYSTEM. 


45 


are four plants, at Boston, Chicago, New York, and St. Louis, and 
in each city we have a superintendent and under him usually two 
assistants. We operate in two shifts, 20 hours a day. These assist¬ 
ants we call inspectors. Then, of course, we have repair men. The 
remainder of our employees we call operators. They look after 
the receiving and the dispatching of the carriers which contain the 
mail. In round numbers, as already stated, we have 200 men em¬ 
ployed in the operation of these plants. 

The Chairman. Not exclusively for the Government? 

Mr. E merson. \ es, sir; we do all the work of handling these car¬ 
riers. The Government fills the carriers and all the work after 
that is done by our men. Are there some other questions in regard 
to the operation of these systems, Mr. Chairman, that you would 
like to ask me? 

The Chairman. Yes. Mr. Stewart would like to know how many 
employees of the Government could take over part of the work if 
it became necessary. 

Mr. Emerson. I have made an estimate as to the cost of operating 
the tubes in case is were done by the Government. I think those 
figures have been already given to you. Of course if the Govern¬ 
ment were to operate these tubes, I assume that they would operate 
them on a basis of 8 hours’ labor for each man, whereas we operate 
the tubes on a 20-hour-a-day schedule and our men are paid for 10 
hours work. They are given a half hour for luncheon. They actu¬ 
ally work 9-| hours. In my estimate as to the cost of operating 
these tubes by the Government I estimated that, because of the 8- 
hour day, it would take approximately 25 per cent more men to 
operate the tubes than we have at the present time. Then, too, the 
Government would probably pay a higher rate of w T age than we do. 
I estimated that the Government would probably pa}^ for these 
operators at the rate of $720 a year, which is an average rate for 
Government labor. We actually pay an average rate of wage of $695 
a year. These two items, of course, would increase the Government’s 
cost of operation. On the other hand, in my estimate if you will 
look it over you wll see that there is considerable decrease in total 
cost of operation by the Government from the fact that the Govern¬ 
ment would not have our large general expense item as we call it. 
My estimate shows, summing up all the figures, that it would actually 
be cheaper for the Government to operate the tubes on our existing 
conditions than it is for the company to operate them at the present 
time. 

The Chairman. The Government would have the fixed expenses 
that you have? 

Mr. Emerson. This estimate which I am discussing covers all op¬ 
erating expenses. In other words, it would cost the Government 
practically the same to operate the tubes as it does our company for 
every item except labor and general expenses. It would cost more 
for iabor, because of the eight-hour law and the slightly higher rate 
of wage paid. For the general expenses it would cost the Govern¬ 
ment considerably less. 

The Chairman. How could the operation be best conducted by the 
Government? Would the Government require an engineer or a 
superintendent with technical knowledge, in your judgment, to 
operate the system? 


46 


PNEUMATIC-TUBE SYSTEM. 


Mr. Emerson. My opinion is that, if the Government took over 
these tubes, they would require practically the same class of men—I 
might say, the same men—we have at the present time. If, for ex¬ 
ample, the operation of these tubes were put under a mechanical 
engineer of the Post Office Department or under the chief mechanical 
and electrical engineer of the Treasury Department, I see no reason 
why such supervising officials should not handle these plants in the 
same way as they handle any of their power plants. So far as the 
labor is concerned, they would have to take over the men that we 
have now or employ men of similar ability. 

The Chairman. How about the extensions? Would it be better 
to have that done by contract or by the employees of the Govern¬ 
ment? I refer to the extensions for any new work. 

Mr. Emerson. I presume extensions would be let out by contract. 
So far as getting the labor to operate the tubes is concerned,' we take 
what you might call very ordinary labor, not skilled labor at all, and' 
we train such men in our work so that the better men, you might sav, 
are skilled pneumatic-tube men, but still they are the most crude sort 
of labor. There is no difficulty in getting operating labor or men 
for supervising work. 

The Chairman. I understand that the Government would not have 
very much difficultv in cases where it contracted for new work, but 
for the ordinary work that would be very difficult, at least at the 
commencement ? 

Mr. Emerson. I do not think there would be any difficulty in the 
Government operating these tubes. I can not imagine any trouble. 

Mr. Powers. I would like to ask Mr. Emerson whether or not it is 
true that the Government is operating tubes at the present time? 

Mr. Emerson. Yes; that is true in the case of the 2-mile line be¬ 
tween the appraiser’s warehouse and the customhouse in New York 
City. That line is operated by the Government. 

The Chairman. Well, that particular line is finished. 

Mr. Emerson. Nothing has been said so far during these hearings, 
I believe, in reference to the amount of mail we are carrying by 
pneumatic tube at the present time. Aside from the Philadelphia 
compan} 7 , our four companies in New York, Chicago, St. Louis, and 
Boston are carrying at the present time, as near as we can estimate it 
at the present time, 18,000,000 letters a day. 

Mr. Murdock. Along that line, Mr. Emerson, I would like to ask 
this question, in order to get the information on the record: I find 
in reading this report of the pneumatic-tube commission of 1908— 
and I read the report most carefully last night—this statement: 

Under the total mileage covered in this report, 36 miles, over 10 per cent of 
the tube capacity is used daily on about 20 miles and less than 10 per cent on 
16 miles. 

Then, when I go into the data which is submitted with the report 
I find that a tube from Koxbury Station to Uphams Corners, in Bos¬ 
ton, is used only to 2 per cent of its capacity. What about that, Mr. 
Emerson? Is that an economical service for the Government? Do 
you think that a tube that is used only to 2 per cent of its capacity 
is necessary ? 

Mr. Emerson. Your statement, I think, shows the very large car¬ 
rying capacity of an 8-inch diameter pneumatic tube. As a matter 


PNEUMATIC-TUBE SYSTEM. 


47 


of fact, an 8 inch diameter pneumatic tube will carry, in round num¬ 
bers, 200.000 letters an hour in either direction. 

Mr. Murdock. If you were a Government employee, would you 
lecommend the construction of a tube from Roxbury Station to 
L phams Corners ? 

Mr. Emerson . that is a question which I can hardly answer. It 
i" my understanding that no extensions of pneumatic-tube service are 
made except after a careful investigation and a recommendation by 
a commission of postal experts appointed by the Postmaster General. 

Mr. Murdock. If you were a Government employee to-day in the 
Post Office Department would you recommend the construction of a 
tube reaching from Roxbury to Uphams Corners when it has been 
demonstrated that you can use only 2 per cent of its capacity for the 
transmission of the mail ? \ou would not, if you were a Government 
employee, recommend the construction of such a tube. Would you 
recommend the Government to buy such a tube? You are acquainted 
with the tube; I am not. I simply take that information from this 
report and I should think that the construction of a tube to a station 
where only 2 per cent of its capacity could be used was rather inde¬ 
fensible. 

There is another question I would like to ask for the purpose of 
getting it in the record. I find in the conclusions of the commission 
this statement: 

Mechanically, the tube service appears to be still in an experimental condi¬ 
tion, although considerable progress has been made toward the development of 
a fixed standard of machinery. 

Now, Mr. Emerson, since this report was rendered in 1908, has 
there been anything mechanically added to the tube system which 
takes it out of the experimental condition? 

Mr. Emerson. Let me say this: That the statement in the 1908 
report, in which it is set forth that the pneumatic tube is still in an 
experimental condition, is an absolute misstatement of fact. The tube 
in 1908 was not in an experimental condition. It had been perfected 
and had been in constant use and we had been getting the highest 
efficiency of service from it for at least 10 years. 

Mr. Murdock. Then you disagree with that conclusion ? 

Mr. Emerson. I disagree with that statement. 

Mr. Murdock. To go back again to this proposition of the per cent 
of tube capacity utilized. I ask you the following question for the 
purpose of arriving at some idea of what they mean by the capacity 
qf a tube. I find that in the city of Boston, from the South Station 
to Essex Station, but 6 per cent of the capacity of the tube is utilized; 
from Essex Station to Back Bay Station, but 5 per cent; from Essex 
Station to Station A, 6 per cent; from Station A to Roxbury Sta¬ 
tion. 4 per cent: and from Roxbury to Uphams Corners, 2 per 
cent. I find that in Philadelphia, from the general post office to 
Station S but 5 per cent is utilized: from Station S to Station O, 3 
per cent. Now, what do they mean by capacity of the tubes? 

Mr. Emerson. I think I can explain that in this way: The tubes 
operate for 20 hours a day. Now, the tubes have a certain capacity 
per hour. They can carry so much per hour and the investigating 
committee have multiplied 20 hours per day by the actual volume 
which the tubes can carry in an hour and called that the 100 per 


48 


PNEUMATIC-TUIE SYSTEM. 


cent capacity of the tubes. Now, each one of these tubes during cer-’ 
tain hours of the day, when the mail is heavy and is being used to a 
greater extent, in some instances to 100 per cent of its capacity, but 
when you take it on a period of 20 hours a day there are certain 
times when the tube is not being used at all. On that basis it does 
not show that the tube is being used to its capacity at any one time. 
I hardly think that is the proper way to judge the tube. 

Mr. Murdock. The highest efficiency of a tube would be its con¬ 
stant use for the expedition of the mail? 

Mr. Emerson. Surely. 

Mr. Murdock. And I understand that in New York City you do 
reach 66 per cent of capacity ? 

Mr. Emerson. Yes, sir. 

Mr. Murdock. Do you not think that when you get down to 2 per 
cent, 4 per cent, and 5 per cent of the capacity, and when you have 
that little mail that can be expedited in the course of 20 hours’ 
service, that you really have no use for the tube in that situation? 

Mr. Emerson. No; I do not think so. It is a question, of course, 
as to how much mail is benefited. The pneumatic tube is essentially 
a service to the mail. It is not a cheap piece of transportation. 
First-class mail is paying at the present time approximately $1 a 
pound to be transported from its origin to its destination. The ques¬ 
tion is, in my opinion, not one of transportation, not one of carrying 
the mail as a matter of bulk, because, of course, it would be far 
cheaper to carry the mail by a slower means, but, in my opinion, it 
is the question of the service which is given the mail. The 1908 
report goe.s into this matter very fully and it shows—I have forgot¬ 
ten the exact figures—that so many million letters are carried a day 
and that only a certain per cent of that amount is actually benefited 
by pneumatic-tube service; that is, that the remainder of the mail 
could have been carried by some other way just as well. But the 
actual cost for carrying a letter which was benefited by pneumatic 
tube was only some one-hundredths of a mill. 

Mr. Murdock. I assume that you have recently read that report? 

Mr. Emerson. I am very familiar with it. 

Mr. Murdock. Do you remember that in that report the statement 
is made, among other conclusions, that some of the tubes reaching 
from stations to post offices are inadequate—that is, that they do 
not carry the mails? Now, there is a case where a tube for 29 hours 
will not work up to 1 per cent of its capacity. 

Mr. Emerson. That is not so. 

Mr. Murdock. I would like to be enlightened on that point. 

Mr. Emerson. Perhaps for one hour it is working to more than 
a hundred per cent of its capacity, but taken over the 20-hour period 
you will see that there are certain hours when it is not working any¬ 
where near its hundred per cent capacity. Take the busiest tube we 
have; the 1908 commission estimate it as working 66 per cert of its 
capacity. During certain hours of the day that tube can not carry all 
of the mail; during other hours it is carrying very little of the mail. 

Mr. Murdock. So there is no tube in the service, to your knowl¬ 
edge, that works 20 hours a day continuously ? 

Mr. Emerson. They all work 20 hours a day. 

Mr. Murdock. But not to capacity? 


PNEUMATIC-TUBE SYSTEM. 49 

Mr. Emerson. They are not loaded up every hour during the 20 
hours. 

Mr. Murdock. Not even between post offices and railway mail 
stations ? 

Mr. Emerson. No, sir. 

The Chairman. Whose fault is it that the system is not working 
continuously and what is the reason for it? 

Mr. Emerson. The simple reason, sir, is that the mails congest 
at a certain time in the day. The business men all mail their letters 
in the afternoon. In the morning there is incoming mail, but there 
are certain hours in the day when the mail is very light. In other 
words, there is a peak load in the same way that an electric light 
plant has a peak load. 

Mr. Powers. And is it not true that there is no public utility that 
is working to its full capacity? The Pennsylvania Railroad, be¬ 
tween Washington and New York, I suppose, is not worked to over 
25 per cent of its capacity. The cables between this country and 
Europe were worked to only 15 per cent of their capacity. The trol¬ 
ley roads running up Pennsylvania Avenue are not worked to 5 
per cent of their capacity. A full capacity on a railroad would 
mean one train right after another. Full capacity on these tubes 
means one of those carriers right after another during the 20 hours. 
That, of course, we do not do. 

Mr. Stewart. There is another view of the subject that is set 
forth in these statistics in regard to Roxbury Station, to which 
reference has been made. It is shown that first-class mail dispatched 
daily by tubes numbered in pieces 46,250, while by other means it 
was only 1,730. The number of pieces of first-class mail received 
daily by the tubes was 59,500, while the number of pieces received 
by other means was only 1,800. So that you can see that the tube 
performs a very important function in dispatching and receiving 
mail. 

Mr. Murdock. Mr. Stewart, I call your attention to the fact that 
Roxbury Station has annual postage receipts of $93,000, and Uphams 
Corners of $37,000. They must be rather small stations. It just 
struck me as I read this report that if I had had charge of the Gov¬ 
ernment’s business I do not believe I would have constructed a tube 
to those stations. 

In connection with your statement, Mr. Powers, about the capacity, 
I was led to inquire about the capacity of these tubes from the fact 
that somewhere in this prior report I found this statement: 

The closest interval between two carriers, originally expected to be 6 seconds, 
is now 13 to 15 seconds, so that the total number of letters dispatched one way 
per hour is rated at 108,000 instead of as in the early days 360,000. 

Reading that statement my mind naturally arrived at the conclu¬ 
sion that a tube was used all the time, and I am rather surprised to 
find that it is not. An expensive service—$17,000 a mile per annum— 
it would seem to me would have to be used all the time? 

Mr. Powers. It is like travel over the railways—at certain periods 
of the day the cars are crowded and at other periods they are not. 

Mr. Emerson. Let me say in that regard that the tube is being 
used all the time. The only question is that it is being used more at 
sometimes than at others." We may be sending only one carrier a 


78419—13 


4 



50 


PNEUMATIC-TUBE SYSTEM. 


minute in the morning, but at other times we are sending six or 
seven carriers. 

Mr. Murdock. How did it happen that the original estimate was 
so far afield with regard to the figures submitted ? 

Mr. Emerson. I can not say as to the original estimate. As a 
matter of fact, we are sending between six, seven, or eight carriers 
a minute at the present time, whereas this report says we are sending 
only four. In certain places we are sending between seven and eight. 

Mr. Stewart. I think that before we leave this question of Rox- 
bury and Uphams Corners stations, Mr. Murdock, it ought to be 
said for the record that service was authorized to those stations in 
Boston upon the recommendation and report of a pneumatic tube 
commission. 

Mr. Murdock. Have you any instances in mind where any mail 
has been diverted from wagon service or street car service or any 
other service in the postal system and put into the tubes for the 
purpose of getting the tube business and keeping them busy. 

Mr. Emerson. No; I have not. 

Mr. Murdock. Nothing of that kind has ever come to your ob¬ 
servation? 

Mr. Emerson. I would not know it if it were the case. We simply 
take the mail that is given us and transport it. We have no knowl¬ 
edge of what the mail is in any way. 

Mr. Murdock. I confess that I am somewhat confused as to this 
matter of utilizing the capacity of a tube. It seems to me that where 
we have an expensive tube and it does expedite the mail—if it does— 
that we ought to use that tube nearly all the time during the 20 hours 
of a postal day’s business between two stations. 

Mr. Stewart. You will do it if you haA r e the business. It has to be 
adapted to the business of the office, and if at the proper time we 
visit some of these cities that point will be entirely cleared up when 
you see how the tube service must be adapted to the accumulation and 
dispatch of the mails. For instance, in St. Louis a tube is used to a 
very low per cent of its total efficiency, but it is entirely on account 
of the peculiarities of the situation in St. Louis; that is, the manner 
in which the mails are handled. 

Mr. Murdock. I have in mind this: If we have a ton of mail at 
the post office in Washington and we want to dispatch that ton of 
first-class mail on a train bound for New York out of the Union 
Station in Washington and we have the two places connected with 
the tubes, if there is an expedition of the mail from the Washington 
station and thence to New York through a tube it looks to me like 
that tube would be utilized to its capacity; but, as a matter of fact, 
I believe there is no expedition of the mail through that to the sta¬ 
tion. I believe that you can take a ton of mail and put it in a screen 
wagon and get it to this station before you can get it through one of 
the tubes. So I think my question with regard to the capacity is a 
very vital point concerning the wdiole matter. In other words, the 
tube does not expedite the mail in all instances, and in a great many 
instances it does not expedite the mail at all. Whenever the bulk 
becomes more than an 8-inch tube can carry then expedition fails. 

Mr. Stewart. That is true; and I do not think there is anybody 
that claims that for the tube service now. It is supplemented every¬ 
where by the wagon service. Where you have a large bulk of mail 


PNEUMATIC-TUBE SYSTEM. 


51 


to be transported at once you have to carry it by other means than 
by the tubes. After those dispatches are begun, then the tubes 
come in. 

Mr. Emerson. There is a certain page, Mr. Murdock, in this prior 
report that I think should be put into the record. Perhaps it will 
help explain your question. On page 28 of the 1908 report the fol¬ 
lowing statement is made: 


FIRST-CLASS MAIL ACTUALLY ADVANCED BY TUBE. 

Out of a total of 15,899,047 pieces dispatched daily at the tube offices, 1,835,338 
pieces, or 11.4 per cent, are reported to have been actually advanced in dispatch. 
Out of a total of 14,167,002 received daily, 787,533, or 10.6 per cent, are reported 
to have been actually advanced in delivery. The total number of pieces actually 
advanced daily by tube was therefore 2,622,871. The total annual pay for tube 
service early in October, when these statistics were taken, was $615,400. or, sav. 
$1,686 per day. 

That is, it charges the entire cost of pneumatic-tube service in 
this paragraph against the mail which was actually benefited—some 
2,000,000 pieces—and it carries the balance of the mail, some 
12,000,000, free. 

Mr. Murdock. I want to call your attention to the summary made 


on page 31 of the same report, which read as follows: 

MilefJ. 

Mileage on which over 50 per cent of capacity is used_ 5, 760 

Mileage on which over 25 per cent but less than 50 per cent of capacity 

is used_ 9. 995 

Mileage on which over 10 per cent but less than 25 per cent of capacity 

is used_ 3. 795 

Mileage on which under 10 per cent of capacity is used_16. 770 


Total_ 36.320 


Mr. Emerson. Of course, sir, this refers to 1908, and since that 
time more mail is being carried. 

Mr. Murdock. That is a very interesting statement. Is there an 
increase in the utilization of the capacity of these tubes since that 
report was made? 

Mr. Emerson. There is no question about that. 

Mr. Murdock. How does that come about? 

Mr. Emerson. Perhaps principally by the annual growth in the 
postal business, and, secondly, in the fact that the post office is find¬ 
ing more ways or means for utilizing the pneumatic-tube service. 
Then, too, I think the public, particularly in New York City, is 
sending more special-delivery letters because of the pneumatic-tube 
service. These facts, however, are something that can be obtained 
from the Post Office Department. 

Mr. Murdock. But it is your belief that there is an increase in 
the capacity of these tubes? 

Mr. Emerson. I know that, because at the present time we are 
carrying 18,000,000 a day, whereas in 1908 all the systems—that is, 
including the Philadelphia system, which I do not now include in 
my figures—were carrying but 14,000,000 a day. So that shows that 
there is an increase. 

Mr. Murdock. And in the course of time you think that there will 
be diminution in this immense amount of what I would call waste 
capacity? You think as time goes on they will use the tubes more 
and more? 








52 


PNEUMATIC-TUBE SYSTEM. 


Mr. Emerson. Undoubtedly, sir. Still, I doubt if it ever goes over 
06 per cent by this means of figuring. 

Mr. Murdock. It has reached that in New York in one instance 
now. 

Mr. Emerson. Surely; and in that instance, during perhaps seven 
hours of the day—that is, when the mail is being most handled—the 
tubes are being used to 100 per cent of the capacity: but there are 
hours when they are being used to only 20 per cent of their capacity, 
and for that reason, stating the capacity on a basis of 20 hours a 
day service, brings the total capacity utilized for the day consider¬ 
ably less than 100 per cent. I think, sir, in other words, that this 
is a misleading way of putting the utilization of the tube service. I 
think it should be put in some other way in which it would appear 
clearer. 

The Chairman. Does your company enjoy certain patents? 

Mr. Emerson. Our apparatus is patented. 

The Chairman. Does that give you a monopoly in the way of 
those patents? 

Mr. Emerson. We claim it does. 

The Chairman. In what respect can the Government operate the 
tubes more economically than the companies are now operating, ac¬ 
cording to your judgment? 

Mr. Emerson. We have already submitted certain figures on this 
subject, but, to put it briefly, in my estimate I find that it would 
cost the Government practically the same to operate the pneumatic 
tubes as it costs this company for every item except labor, and labor 
would cost more because of the eight-hour day and because of a 
higher rate of wage. On the other hand, the Government would not 
have the very large general expense which we have, the greater part 
of which is for legal services, salaries, etc. The Government would 
not have these expenses which the company has, and these offset the 
increase in labor cost, so that by my estimate the Government, on 
our present basis, could operate the tubes on an eight-hour day for 
slightly less than it costs the company to operate the same tubes. 

The Chairman. If the Government were to charge up all the items 
that they should, I do not see how the expenses would be reduced any. 

Mr. Emerson. I am referring simply to operating expenses. I in¬ 
clude all the items of operating expense. 

The Chairman. Are there any advantages that would accrue to the 
Government by the ownership, in your judgment? 

Mr. Emerson. Under Government ownership of the tubes, of 
course, the Government would have the absolute control of the tube 
service. At the present time the operation of the tube is limited to 
20 hours a day. The Government in some instances might wish to 
operate them 24 hours a day, and in some instances, perhaps, they 
would wisli to operate them less. The Government’s control of its 
own utilities, it seems to me, is advisable. This tube is used ex¬ 
clusively for the post office. It connects different post offices. It is 
really an extension of the post office. It carries United States mail 
alone. The employees of the company, while paid by the company, 
are Government employees. I can not see any disadvantage to Gov¬ 
ernment operation. Perhaps I can answer the question best in that 
way. 

The Chairman. That is what we are trying to find out. 


PNEUMATIC-TUBE SYSTEM. 


53 


Mr. Stewart. Can you see any difficulty in the Government opera¬ 
tion ? 1 ou are a superintendent of some of the systems and should 

be able to speak with regard to the operating viewpoint. 

Mr. Emerson. I have charge of our four system; yes, sir. I can 
not see any difficulty. The Government, for example, operates its 
power plants. Our tubes are really machinery, and if the Govern¬ 
ment can operate its power plants, which are much more intricate 
than pneumatic-tube machinery, I do not see any reason why they 
can not operate the pneumatic tubes. 

Mr. Stewart. We would have to have some men with technical 
learning or experience? 

Mr. Emerson. Yes. I understand that all of the Government's 
power plants come under the chief mechanical and electrical engi¬ 
neer of the Treasury Department. His department certainly has 
engineers who are fully qualified to operate the pneumatic-tube 
service. 

The Chairman. Was this svstem of tubes used first in our countrv, 
or was it first adopted abroad? 

Mr. Emerson. It was first used in this country; that is, the large 
tubes. There are small tubes abroad, but the large tubes are only 
used in this country. 

The Chairman. Do you know whether the Governments abroad 
have gone into the question thoroughly as to the use of the tubes? 

Mr. Emerson. I do not know about that, sir. Mr. Batcheller, I 
think, can give you additional information with regard to the for¬ 
eign plants, if you wish that. I know that two or three years ago 
some one went into the question of using what might be called a 
small automatic railway system, such as we have at Cambridge. I 
do not think one was ever built. I remember reading about it in 
some consular report. 

Mr. Bacheller. I will repeat what I said yesterday: In European 
cities they have never used pneumatic tubes to transport the regular 
mails. They have onty used them for special letters and telegrams. 
For the special letters and telegrams they have gone into the subject 
quite extensively. They have used the system for 40 years, more or 
less, and have gradually extended it. 

Mr. Emerson. The figures which you have show in detail the 
estimate, as I prepared it, stating the cost of Government operation. 

Mr. Stewart. Can you submit the cost of construction for the sev¬ 
eral systems in the several cities? 

Mr. Emerson. Is not that item already given, Mr. Stewart ? 

Mr. Stewart. I think this information we have relates altogether 
to the cost of operation. What I had in mind was some sort of a 
statement with reference to the cost of construction, especially the 
original cost. 

Mr. Emerson. If it is not in the statement submitted, we can give 
you that information. 

Mr. Stewart. Can you also furnish, approximately, the cost of re¬ 
production ? I think you gave our former commission those figures, 

Mr. Emerson. Mr. Batcheller did, I believe. 

Mr. Powers. We would be glad to give you that information, Mr. 
Stewart. 

Mr. Stewart. Then I think it might be well to submit a schedule 
of your patents which you hold or control. 


54 


PNEUMATIC-TUBE SYSTEM. 


Mr. Emerson. That was also given the former commission, was 
it not? 

Mr. Stewart. Yes; but it was not published, and those files are 
in the department somewhere, and I think it would be well to have 
them before this commission. 

Mr. Powers. Some time before the commission adjourns I desire 
to make a brief statement regarding the question of price. That in¬ 
quiry was made yesterday of Mr. Hayden as to what he would sell 
the plant to the Government for, give good title and free from all 
encumbrances. He answered it by saying that the company would 
be willing to sell for a price which would represent the capitalization 
of the savings at 6 per cent. Now, the capitalization of the savings, 
as we look at it, would amount to something like $6,500,000, at 6 per 
cent; that is, assuming that the savings are in the vicinity of $400,000. 
Last year—that is, the fiscal year which ended in March—the Gov¬ 
ernment paid us in round numbers $759,000. That was the contract 
price. We saved out of that as net earnings $340,000. In other 
words, you may say the plant, as a going concern, earns 6 per cent 
upon about $6,000,000. Yesterday Mr. Murdock suggested the plan, 
which I understood, although I am not familiar with it, had beeli 
adopted by the Interstate Commerce Commission, of determining the 
value of the plant which is made up of three elements—one being the 
cost of the plant, the other being its value as a growing concern, and 
the other the cost of reproduction. If you take those three items, 
what we bid for those plants, the value of the plant as a growing 
concern on a basis of 6 per cent of $6,000,000, and the cost of repro¬ 
duction, I think you will reach, in substance, the same figures again, 
of $6,000,000. Now, we believe that along with this plan, if you 
reach the conclusion that it is feasible and desirable for the Govern¬ 
ment to own those plants we can reach an estimation which is abso¬ 
lutely fair to the Government. 

I want to say just one word with reference to the cost of repro¬ 
duction. I do not imagine that this commission, made up as it is of 
men of large experience, is in any way misled by that question of 
reproduction. It is not a question of what it costs us to build the 
plants; it is a question of what men to-day with capital, having our 
experience, having the benefit of our experimentation, and having 
considered the matter carefully, could build those plants for. It 
may have cost us $10,000,000 to build those plants, and perhaps you 
can build them to-day for $4,000,000. That is not the question. I 
am interested in the building of a gun and have been for 10 years. 
It has cost us over $200,000 to produce that gun, and yet that gun 
can be reproduced to-day for $30. Now, it would hardly be fair to 
say that we should turn over our patents to the Government and sell 
that gun to the Government for $30. That is exactly what it means 
with reference to these plants. The men who went into the build¬ 
ing of those tube lines years ago expected to make money. They 
were willing to put in their capital; they had not the slightest idea 
what it would cost. No doubt the Post Office Department looked 
upon it as a new method by which it might render the greatest serv¬ 
ice in the transmission of mail, and they said, “ You go ahead,” and 
they cooperated with them. We have gone ahead, and I think Mr. 
Stewart will say that the men who have developed this pneumatic- 


PNEUMATIC-TUBE SYSTEM. 


55 


service system have acted with the highest degree of patriotism from 
the very first. We have to-day a system which is of the greatest 
service to the country. It is true that it is not being operated to its 
full capacity, but it will be operated more and more every year to 
its full capacity. I believe you will reach the conclusion that you 
are just entering upon this development of pneumatic tubes. With 
your parcel post coming on you will find it will be more and more 
needed by the postal department as the years go by. 

Now, I wish to say just one more word, and that is this: If you • 
will give to the company which we gentlemen represent a contract 
for 50 years for the same price that you are paying us to-day, with 
an agreement that so long as we perform our part of that contract 
that the contract shall stand, then we will go ahead and we will 
raise the money and we will finance these extensions to the fullest 
extent that the Government desires; but to-day we have a contract 
which expires a little over three years hence. It is for a period of 
10 years; and if I am correctly informed, the position taken by the 
Postmaster General has been that it can continue only at the pleas¬ 
ure of the Postmaster General. In other words, that even during 
these 10 years the Postmaster General may at his pleasure discontinue 
that contract. I want to ask you gentlemen if you would feel like 
putting your own money into a contract which was terminable at the 
pleasure of the Postmaster General. The Postmaster General does 
not continue for all time in that office; he changes; in one admin¬ 
istration he is one man, and in another administration he is another 
man. That is the kind of contract we have. Give us the kind of a 
contract which business men make with each other—a contract for 
a sufficient length of time and a contract that will stand so long as 
the contracting party performs the terms of that contract—and we 
can raise the capital; the public will contribute to it then. We are 
here to-day simply because we can not raise the capital to give to 
the United States Government that kind of equipment and extension 
of equipment which you demand. 

We have not a thing to keep back from this commission. All 
information which you have called for and which you may call for 
will be submitted to you for your inspection, and we believe that 
you will reach the conclusion in the end that the Government by 
ownership of this system can save money. I believe you will reach 
the conclusion that you can save, over what you are paying us to¬ 
day, at least $400,000 a year. Four hundred thousand dollars a year 
in the next three and a half years means $1,400,000. In other words, 
$1,400,000 toward the purchase price, if it be $6,000,000, is substan¬ 
tially one-fourth of the entire sum which the Government can save 
in the next four years. Then, put us in a position with a contract 
by which we can raise the capital, and we will go ahead and perform 
this service in a manner such as the Government demands. 

I have nothing further to say, Mr. Chairman, except to put that 
in that way; and I think you can understand perfectly that that 
means an offer to sell at a price to be arrived at in one of those two 
or three different ways, which is substantially $6,000,000. 

The Chairman. Are there any other of you gentlemen who wish 
to be heard? 

Mr. Powers. I should say, of course, that we are here to-day as 
directors or officers of the company, Any proposition which we 


56 


PNEUMATIC-TUBE SYSTEM. 


make to you, if acceptable, would have first to be submitted to our 
stockholders. My belief is, however, that our stockholders have 
sufficient confidence in the officers to adopt our recommendation. 

STATEMENT OF MR. W. P. J. MURRAY, TREASURER OF THE 
INTERNATIONAL PNEUMATIC TUBE CO. 

Mr. Murray. Four years ago, at the time the commission then went 
into the question of the purchase or advisability of the purchase 
of pneumatic tubes, the method then was of sending forward a long 
list of questions, which the companies went into with their counsel 
and answered to the best of their ability. With regard to this com¬ 
mission we were under the impression that that procedure would 
likely be followed; in fact, so much so that yesterday—although we 
had heard indirectly that there would be a meeting of the commis¬ 
sion—we had no idea that they would enter into the matter as they 
have apparently done. What we crave is a fortnight’s time to get 
our data in shape and especially to get our chief engineer here. 

The Chairman. We expect to give you all the time you ask for 
within reason. 

Mr. Murray. In a fortnight’s time we would be pleased to have 
two or three hours’ time at the utmost. 

The Chairman. If you are not ready at this time, if you will write 
a letter to the commission we shall be glad to give you an opportunity 
at some future day to be heard. 

Mr. Murray. I shall be glad to do that. 

The Chairman. If there is nothing else, the commission will now 
go into executive session. 

Mr. Powers. I do not think we have anything further to offer at 
this time. We wish to cooperate with you and assist you to get a 
full knowledge of the entire situation. 

I would like to have a memorandum, if Mr. Stewart will furnish 
it to us, as to just what he has asked us to furnish the commission. 
We shall be glad to furnish everything that has been asked for. 

Mr. William H. Ames. I would like to extend an invitation to the 
commission to visit the New York system- I think you would be 
highly interested in seeing it in operation. I think Mr. Murdock will 
understand then why they are not operating to their full capacity. 

Mr. Murdock. I am very desirous of seeing the tubes in operation. 

The Chairman. The commission will probably visit New York 
for that purpose. 

Thereupon, at 11.30 o’clock a. m., the commission adjourned to 
meet again at 10.30 o’clock a. m., December 9. 1912. 


Washington, D. C., Monday , December P, 1912. 
The commission met at 10.30 o’clock a. m. pursuant to adjourn¬ 
ment. 

Present: Senators Simon Guggenheim (chairman), and Hoke 
Smith, Representatives Fred L. Blackmon and Victor Murdock, and 
Hon. Joseph Stewart, Second Assistant Postmaster General. 

Mr. Stewart. Mr. Chairman, before beginning with the witnesses 
I desire to present to the commission some documents which have 



PNEUMATIC-TUBE SYSTEM. 


57 


been submitted to me as Second Assistant Postmaster General by the 
American Pneumatic Service Co. in response to questions which I 
asked. I submit them with my own letter of transmittal. 

The Chairman. We will now hear from Mr. Masten. 

Will you please give us such information and throw such light on 
the situation as you can, Mr. Masten? With the exception of Mr. 
Stewart, this question is a new one to the members of the commission. 

Mr. Murdock. I suggest, Mr. Masten, that you start in the regular 
way and state what your official position is and what your connection 
with the pneumatic-tube service has been. 

STATEMENT OF MR. JOHN M. MASTEN. 

Mr. Masten. My name is John M. Masten. I am now Superin¬ 
tendent of the Railway Mail Service at Pittsburgh, Pa., and. pre¬ 
vious to December 1, 1911, I was attached to the Second Assistant 
Postmaster General’s office as an Assistant Superintendent of the 
Railway Mail Service, detailed in connection with an investigation 
of contract mail service; since June 1, 1902, and also between De¬ 
cember 18, 1890, and about September 1, 1898, in the same capacity. 
In that assignment I had many investigations to make in connection 
with other departmental officials and by direction of the Second 
Assistant Postmaster General of proposed and contemplated pneu¬ 
matic-tube service in different cities of this country. 

Mr. Murdock. You were appointed, were you not, on a commis¬ 
sion in 1907 to investigate the practicability of the purchase of this 
system by the Government ? 

Mr. Masten. I was appointed on such a commission; yes, sir. 

Mr. Murdock. And you signed the unanimous report against the 
purchase of the system at that time? 

Mr. Masten. I did. 

Mr. Murdock. Now, have you had any experience subsequent to 
the filing of that report which would give you a slant toward the 
purchase at the present time of that system? 

Mr. Masten. I have retained my active connection with the inves¬ 
tigations and inspection of the pneumatic-tube service since 1908, 
and up to the present time, except that within the past year, my other 
duties at Omaha, Nebr., and Pittsburgh, Pa., have not been such 
that I could give specific time to the pneumatic-tube service. 

Mr. Murdock. Let me refresh your memory on this very vital part 
of your former report. There are some nine conclusions enumerated 
by the Pneumatic Tube Commission of 1908, and No. 5 is as follows: 

Mechanically the tube service appears to be still in an experimental condition, 
although considerable progress has been made toward the development of a 
fixed standard of machinery. 

Do you know of anything which would persuade you to change 
in any way that finding? Has there been any subsequent develop¬ 
ment "of the tube service itself or any invention or any increase in 
the size of the tubes which would lead vou to come to a different con- 
elusion than you did in 1908? 

Mr. Masten. There has been a constant progress toward the stand¬ 
ardization of all machinery used in the pneumatic-tube service; in 
the propelling machinery—that is, the air compressors and blowers 


58 


PNEUMATIC-TUBE SYSTEM. 


in the forms of pneumatic-tube receivers and transmitters and in re¬ 
gard to the size of the tubes as well. Recent investigations have 
been made of a 30-inch and a 36-inch pneumatic tube for the trans¬ 
mission of all classes of mail, instead of the smaller standard 8- 
inch. size, which is largely used for the transmission of first-class 
mail, registered mail, and the smaller articles of the fourth class. 

Mr. Murdock. In that connection, have you had any personal con¬ 
tact and experience with the larger tubes; as for instance the tube 
which is now operated between the House of Representatives and the 
House Office Building, a tube whose mechanical process is one of 
creating a vacuum in front of the tube? Do you know about that 
tube ? 

Mr. Masten. I have inspected that tube informally and I know 
something of the character of the machinery they use, that system 
having been operated in the form of a 10-inch tube used in the mail 
service of the city of Boston for a period of time. Here in the large 
tube between the Capitol and the Ilouse Office Building they have 
enlarged the size of the tube and the extent of the machinery, but it 
is practically the same system that was used in Boston. 

Mr. Murdock. If we can demonstrate that a larger tube is practi¬ 
cable, a tube which will carry a unit of mail transmission—which is 
the pouch or sack—as a postal official, would you recommend the 
purchase of a smaller tube, which is available only for the trans¬ 
mission of first-class mail? 

Mr. Masten. On the contrary, I think there is a place for the 
large tube—the 30-inch tube. 

Mr. Murdock. Will you explain in detail why we should have 
three different sizes of tubes? 

Mr. Masten. Because of the inequality of the mail. The 30-inch 
tube is enormously expensive to construct on account of the space it 
will take in the streets and the space required in its operation at the 
terminals and in the general post offices and at railroad stations. 
It would almost entirely supercede other forms of transportation, 
the screen wagons, the automobiles, or whatever might be at present 
used. The small tube, the 8-inch tube, is designed and used almost 
entirely for the transportation of first-class mail at present, because 
of the possibility of constructing it at a much less expense than the 
larger tubes, which would carry all classes of mail, and because it 
furnishes a more frequent service. The 8-inch tube has a carrier, 
which will weigh in the neighbarhood of 15 to 25 pounds when 
loaded with mail. 

The operator at the tube terminal can pick up those carriers and 
set them down, lock and unlock them, open and dump them—that is, 
empty them of mail, all they wish to without the providing of a 
mechanical system for handling the carriers at the terminals. It is 
very much like a man laying bricks. He can pick up bricks and 
put them in place all day. It is within the physical capacity of the 
man. In the case of the 30-inch tube, I should say that the develop¬ 
ment of it would be by means of tracks in iron tubes or in conduits 
built of brick or concrete, with rails or some fixed means for the 
carriers to run on; and at the terminals and in the post offices and 
the railway stations it would be necessary to have a miniature rail¬ 
road yard for the switching of those large carriers. Such a system 
was investigated at Cincinnati in 1910 and we found that those con- 


PNEUMATIC-TUBE SYSTEM. 


59 


ditions were practically imperative in order to handle the pouches 
and sacks. The frequency of dispatch as compared with the 8-inch 
tubes would be very much less, one a minute as against four or five 
a minute in the case of the 8-inch tube. 

Mr. Murdock. As a matter of fact, the original estimate on the 
efficiency of the 8-inch tube has never been lived up to as regards 
frequency of dispatch as shown by your report. Is not that true? 

Air. Masten. I think that is true in a general way; at least it is 
true with qualifications. 

Mr. Murdock. Not to break the line of your narrative, why do 
you supplement the provisions of a 30-inch and an 8-inch tube with 
the suggestion of also a 6-inch tube? What would you use your 
6-inch tube for where an 8-inch tube would not apply? 

Mr. Masten. I would use it in the less important parts of the city 
where the 8-inch capacity would not be required for the handling of 
the first-class mails and for mail of that character, registered mail, 
and second, third, and fourth class mail. That 6-inch tube is in 
operation now. The first pneumatic tube constructed in the United 
States was a 6-inch line in 1893, and it is still in operation carrying 
the mail in Philadelphia between the general post office and the 
Bourse station at Fourth and Chestnut Streets. It furnishes quite 
a large capacity for the first-class mail and the section of the city 
in Philadelphia supplied from the Bourse station, or tributary to 
the Bourse station is the financial district. The mail originating 
there is very important. We found that the 6-inch tube would carry 
that mail successfully. In the earlier stages of the investigation con¬ 
sideration was given to the adoption of a supplemental service in 
connection with the larger 8-inch tube reaching the outlying stations 
in order to provide a thorough and a complete pneumatic tube 
service in the cities under examination. 

Mr. Stewart. I think the point that is in the mind of Mr. Mur¬ 
dock and I know will be in the minds of other members of the com¬ 
mission in regard to the use of the larger tube and the smaller tube 
in the same system is this, Mr. Masten: What conditions are there in 
the postal service in the large cities in reference to the accumulation 
and dispatches of mail which would make it advantageous to use 
tubes of those sizes? Take, for instance, the city of New York, 
which would give an illustration of that. How could the large tube 
be used there to advantage in dispatching mails in bulk and at the 
same time how could an 8-inch tube be also used to advantage ? 

Mr. Masten. The large tube could be used, taking the city of New 
York as an example, in the very congested parts of the city, as be¬ 
tween the general post office on Park Row and the new post office at 
the Pennsylvania Station, Eighth Avenue and Thirty-second Street, 
and to the Grand Central Depot and the post-office station located 
adjacent thereto, Forty-fifth and Lexington Avenue. That is the 
trunk line as comparing it to a tree. That is the trunk of the tree 
and the 8-inch line would be the branches or the limbs of the tree 
which would reach the other more distant postal stations where the 
same quantity of mail would not be transported and where the fre¬ 
quency was not so desirable and necessary. The frequency from the 
downtown financial part of New York City and the uptown railroad 
stations is now required at every 10 or 15 minutes for a wagon load 
of mail going to the Pennsylvania Railroad into the Grand Central 


60 


PNEUMATIC-TUBE SYSTEM. 


Railroad, each one. From the Grand Central postal station, north 
of the east side of the city, a much less frequent service is required. 
There is a less quantity of mail to be carried and a less number of 
possible connections to be made. The same is true of the west side 
from the Pennsylvania Railroad and post office. 

Mr. Murdock. Do I understand you to say that at some of these 
stations in New York more mail is offered in postal administration 
for transportation through tubes than the tubes can handle? 

Mr. Masten. That is true, Mr. Murdock. 

Mr. Murdock. Then, how do you explain that in view of the fact 
that the very highest efficiency shown in New York is over 66 per 
cent of the capacity of a tube ? 

Mr. Masten. It is explained by the fact that the mail does not 
originate evenly throughout the entire 24 hours. The great bulk 
of the incoming mail is handled in the morning from 5 o’clock until 
half past 9. The great bulk, or 75 per cent of the outgoing mail of 
the entire 24 hours is handled in the evening between 4 and 9 o’clock 
p. m., so that 75 per cent of the mail must be given transportation 
in a matter of 5 hours and only 25 per cent be handled in the remain¬ 
ing 19 hours. 

Mr. Murdock. Between the two rush periods, Mr. Masten, there 
comes the period then in which the tube can not be utilized to its full 
extent in the expedition of the mail? 

Mr. Masten. It can not, because the mail does not originate in 
those hours. 

The Chairman. Is that entirely a physical question? 

Mr. Masten. The capacity of the tube is fixed. It can operate at 
one hour just as efficiently as any other hour. 

Mr. Murdock. In the late evening hours there is more mail offered 
than the tube can handle? 

Mr. Masten. Undoubtedly, in New York City. 

Mr. Murdock. Then its capacity must be at that time 100 per 
cent, but in the interim between these two rush periods enough mail 
is not offered to be expedited continually through that tube. 

Mr. Masten. Enough mail is not received, is not turned over to 
the post office to completely utilize the full capacity of the tube. We 
found that that was true in Boston between 6 and 6.30 p. m., and 
between 9.30 and 10 o’clock at night. We found it true in Chicago 
between 6 and 8 in the evening between the post office and the 
Union Depot more mail was offered, more mail to be transported, 
letter mail, than the pneumatic tube, fixed to capacity, could handle. 

Mr. Stewart. Bv “ fixed to capacity ” you mean 20 hours a day 
continuous service ? 

Mr. Masten. Yes; based upon 20 hours of operation at the fixed 
rate aggregating 9,600 possible dispatches for the 20 hours’ time. 

The Chairman. In plain English, the mail is not available? 

Mr. Masten. The mail is not there. If we have the larger mail, 
the tube would be used to the larger capacity, because it would be 
used up to the full extent during the 24 hours and thereby the total 
use of efficienc}^ would be increased. The average there is misleading 
as it is in many other cases. The average does not include the maxi¬ 
mum and it includes the minimum. 

Mr. Murdock. Let me get your idea. If this Government had at 
the present time a pneumatic-tube system there would be an entire 


PNEUMATIC-TUBE SYSTEM. 


61 


use for at least two size tubes, one a large tube and the other a small 
tube, the small tube to be used as a branch to the trunk, the larger 
tube, in your opinion, would carry the unit of mail to be transported— 
the sack or pouch of mail—and the smaller tube would carry a car¬ 
ton for first-class mail. Now, does that state precisely your position? 

Mr. Masten. That is clear in representing my belief in regard to 
the use of the pneumatic-tube service. 

Mr. Murdock. That idea of yours does not extend to the point 
that you would have parallel lines and large tubes running between 
the same stations. 

Mr. Masten. Yes; because the large tube in New York between 
the post office and the Pennsylvania Railroad would be the trunk line 
and the express line, only carrying the mail between those two ter¬ 
minals, while the 8-inch tube would run between the same points, 
stopping as it does now at the branch post office at Canal Street, at 
Prince Street, at Eighteenth Street, and at Thirty-first Street; that 
is, Stations Y, A, O, and E. Those are all big post-office stations, 
Station O having a revenue and a quantity of mail equal to the city 
of Buffalo; Station A being also a very large station and its business 
amounting to as much as a city of 300,000 people. It is in the whole¬ 
sale millinery and fancy-goods district. Station V is down in the 
wool, boot, and shoe district, and has a large mail. The 8-inch tube 
now is used to its capacity between the post office and Station E, 
going by way of Stations A and O. While there is need for the 
24-inch tube as a trunk line between the post office and the Penn¬ 
sylvania Railroad and thence to the Grand Central Depot- 

Mr. Stewart. xCnd also the Hudson Terminal. 

Mr. Masten. I hardly think so. The Hudson Terminal is a letter 
station—that is, used for letter mail onlv—and the 8-inch tube fur- 
nishes approximately the capacity that is needed from the Hudson 
Terminal to the post office and the other East and West Side lines. 
There is a period in the evening in which it will not carry the total 
mail, but it furnishes approximately the capacity needed. The Hud¬ 
son Terminal is the mailing division of the New York post office. 
It is only four minutes away from the post office and was provided 
by the department simply because the post office on Park Row did 
not have enough space to do the necessary work. It is an adjunct to 
the general post office. It is a mailing division for the handling of 
letter mail. 

Mr. Blackmon. Mr. Masten, did I understand you to say a moment 
ago that the adoption of the 30-inch tube would do away with the 
screen wagon and the automobile service ? 

Mr. Masten. Almost entirely do away w T ith it. I believe it will 
do aw T ay with it between the points that are connected. 

Mr. Blackmon. What is the objection, or is there any objection, 
to doing away with that service if the 30-inch tube would answer 
the same purpose ? 

Mr. Masten. I know of no objection to doing away with the screen 
wagon or automobile service, and in certain places I can see a use 
for the 30-inch tube, because the service on the surface of the streets 
is not efficient; too much time is consumed. The wagons, from the 
general post office in New York to the Pennsylvania Railroad are 
given 34 minutes’ running time from one point to the other. From 
the post office to the Grand Central they are given 40 minutes. The 



62 


PNEUMATIC-TUBE SYSTEM. 


30-inch tube operating at 30 miles an hour, or approximately that, 
would cover that 3 miles in a matter of 6, 7, or, say, 10 minutes at 
the utmost. 

Mr. Blackmon. Do you know what the comparative expense is in 
reference to the wagon or automobile service and the pneumatic- 
tube service? I am asking now for information. I have not seen 
anything on that point. 

The Chairman. Was that covered in your former report, Mr. 
Masten? If it was, we can easily get the information from the 
report. 

Mr. Masten. It was not in the former report—that is, as applied 
to New York. I think New York would necessitate the maximum 
of cost for the construction of a large tube on account of the great 
use of the streets for other underground structures, the water, the 
gas, the telephone conduits, and the telegraph, and underground 
street railroads; their systems are all operated by the underground 
conduit system, and it was found quite difficult to get a space for 
the 8-inch tube in the down-town part of the city. 

Mr. Stewart. They might be elevated, Mr. Masten. 

Mr. Masten. They would have to be carried on other streets than 
those used for the 8-inch tube, and at a considerable depth. Crossing 
Broadway coming from the east side to the west side with the 8-inch 
tube was found to be almost impossible.- The tube line as constructed 
in New York across town had to be changed, and from its former 
location extending from the Grand Central postal station to Station 
G was the first proposed cross-town connection. At Broadway, in 
the neighborhood from Forty-second Street to Forty-sixth Street, 
the street was occupied by the Interborough Transit and Telephone, 
and the wire conduit which completely blocked any possible crossing 
of that, and connection was finally established between the Grand 
Central postal station and the Times Square postal station through 
Thirty-ninth Street, really getting away from the subway which runs 
through Forty-second and Broadway. 

Mr. Murdock. Mr. Blackmon, I wish you would press your in¬ 
quiry as to the relative cost of screen-wagon service, as compared 
to the pneumatic-tube service for the transmission of mail in bulk. 

Mr. Blackmon. I was going to ask Mr. Masten if any estimate 
had been made on that, and, if so, if we can get it. 

Mr. Stewart. I think an estimate was made in Cincinnati on 
eighty one-hundredths of a mile between the post office and the 
Union Station. Then, the department now has a pneumatic-tube 
commission—that is. a departmental commission—considering the 
question of a large tube between the Pennsylvania Railroad station 
and the Grand Central station in New York. In that connection, 
the companies who are proposing to submit bids, if we advertise, will 
"soon submit, if they have not already done so, to this committee the 
probable cost. We could compare that with the cost of maintaining 
the wagon service between those points. 

The Chairman. I think the greatest factor would be not so much 
the screen wagon as the motor power. Is there anything available 
in that line? 

Mr. Stewart. Yes; we are making use at New York of that now. 

Mr. Murdock. Will those figures be available for the use of this 
commission ? 


PNEUMATIC-TUBE SYSTEM. 


63 


Mr. Stewart. Oh, yes; they will be available. 

Mr. Murdock. Both the motor car and the screen wagon? 

Mr. Stewart. Yes. 

The Chairman. The motor car might be a factor, particularly if 
we can not get a franchise for the tube system. 

Mr. Blackmon. I would really like to have an estimate made as 
to the relative cost and the time. I can understand where the service 
might be more rapid through the tube, but the cost might not war¬ 
rant that slight saving in time. 

Mr. Stewart. Of course, you must take into consideration the fact 
that when you are underground you get rid of the congested street, 
which is a very material point in most of the big cities, and is grow¬ 
ing more so every day. 

Mr. Masten. The committee in Cincinnati that investigated the 
large tube referred to the condition there as favoring the construc¬ 
tion of a 36-inch tube as against almost any other size. 

The Chairman. Will you see, Mr. Stewart, that the information 
asked for is furnished to this commission—that is, as to the cost of 
the motor cars as well as the other cost ? 

Mr. Stewart. That is, compared with a tube of, say, 30 inches in 
diameter between the two points for bulk mail. In other words, a 
tube which would practically supersede the other service? 

The Chairman. Yes; or vice versa. 

Mr. Stewart. Yes; I will have such information prepared, and 
I think these data which will be submitted to the commission which 
is now sitting will give us the basis for it. 

The Chairman. Are there any other appliances that are being 
experimented with that might be advantageous, so far as you know, 
Mr. Masten? 

Mr. Masten. There have been a great many devices offered to 
the department for investigation, but upon investigation many of 
them have not been found adapted to the purpose. The 36-inch tube 
in Cincinnati was recommended, as the cost was not excessive for its 
construction, and its use offered an opportunity for a very interest¬ 
ing experience, to determine what quantity of mail it would carry, 
how frequently the carrier could be operated, and what amount of 
space would be used at the terminals for the proper handling of the 
mail, the shifting of the cars, and the loading and unloading of them. 
Quite an amount of space is given up to that in New York; that is, 
in the handling of the mails in and out of wagon. Practically a 
private street has been constructed in the rear of the post office which 
is devoted to the mail wagons alone. Any conveyance that would 
limit the amount of space occupied in the streets of Chicago, New 
York, Philadelphia, and Boston would be a very desirable thing, 
and would, to some extent, justify the increased cost for the carrying 
of the mails. In times of storm, sleet, and snow, it is very hard on 
the horses, and it is almost a complete blockade for automobiles 
with slippery rubber tires. At such times the people are mailing 
just as many letters and just as many newspapers and just as much 
advertising matter, and the problem of handling mails in time of 
storm is always a severe test for the Post Office Department. 

Mr. Murdock. It seems that the Boston Pneumatic Service Co., 
which operates both interior and exterior service tubes, is capitalized 
for about $13,000,000, and Mr. Hayden, who appeared for the com- 


64 


PNEUMATIC-TUBE SYSTEM. 


pany here as its banker, said that of those outstanding securities 
$7,000,000, in round numbers, represented that part of the company 
which operated the exterior tubes, namely, those tubes which are 
used by the Government. Have you any recollection as to whether 
or not those figures are about as you found them in 1908, or has that 
passed away from your memory ? 

Mr. Masten. I think the commission, in 1909, found that the ap¬ 
proximate cost, as near as it could be verified, amounted to some¬ 
thing like five and one-half million dollars, but that since 1909 
there has been some additional construction in New York, as, 
for instance, between the Grand Central postal station at Forty- 
sixth Street and One hundred and twenty-fifth Street, connecting 
up Stations Y, K, U, and L; an additional line between Stations 
O and C; the connection of a new postal station at One hundred 
and sixteenth Street, Station I, and the removal of Station J 
from One hundred and twenty-fourth Street and Eighth Avenue 
to One hundred and twenty-fifth Street, near Eighth Avenue; also 
some additional construction in Chicago between the old postal sta¬ 
tion at the Union Depot and the Canal Station at the Chicago & 
North Western depot, and the restoration of the tube connection be¬ 
tween the post office and Kinzie Station, including the building of a 
private tunnel under the Chicago River. 

Mr. Murdock. You think, then, that all fhis new construction is 
the reason for the difference between the valuation in 1908 or 1909 
of five and a half million dollars and the present valuation of 
seven million dollars? 

Mr. Masten. I do not think I would be competent to answer that 
question without an opportunity to get better information. 

Mr. Murdock. Our present annual rental for these tubes is 
$17,000 a mile. Mr. Masten, in your opinion is that enough? 

Mr. Masten. As an average in the cities which are now connected 
by pneumatic tubes, I should say that it was fair. As applied to 
individual systems as in New York, it hardly seem adequate. The 
committee of 1909 found a material difference in the cost of con¬ 
struction and operation in New York as compared with Boston, 
Chicago, and Philadelphia, representing a difference of approxi¬ 
mately 25 per cent, as I now recall it. 

Mr. Murdock. So that you think in some instances the pay is 
adequate and in others it is not ? 

Mr. Masten. Yes. 

Mr. Murdock. In your belief is it in any instances excessive? 

Mr. Masten. I am not prepared to answer that specifically. While 
I realize that there is some difference in the cost of construction in 
the different cities, there are also other conditions which tend to 
approach the average or approach the present allowance of $17,000 
a mile. For instance, in St. Louis the terminals have been changed 
from the old branch post office at the Union Depot to the new post 
office. That change was made without the allowance of but a very, 
very small addition to the annual rental, yet it represented a con¬ 
siderable cost, as under the contract the pneumatic tube companies 
are required to remove their apparatus from one post-office location 
to another whenever the post office moves. In Philadelphia, as 
another illustration, the pneumatic-tube terminals at the Broad 
Street Station have been moved twice from their original location, 


PNEUMATIC-TUBE SYSTEM. 


65 


each time without the allowance of any or but a very small addi¬ 
tional rental. In New York City those changes in location have been 
quite frequent. I hey embrace Stations A, O, J, the Grand Central 
postal station, Station D, Station F, the Wall Street station, and 
Station P at the customhouse. Those changes have been made in 
every instance without the allowance of any rental or, if any, but 
very small, in addition to their annual rental. 

Mr. Murdock. It is very interesting to know whether in the case 
of an abandoned line any use whatever can be made of it after it has 
been abandoned by the Government by reason of a change in location 
of a station. For instance, when Station J in New York City was 
changed by the Government, could the company put the tube to any 
use? 

Mr. Masten. The change is made usually without interrupting any 
portion of the line except the branch connection that leads from the 
street into the post office, and opening the tube at another point, 
providing a side connection into the new location. 

Mr. Murdock. I am speaking particularly of where a lateral has 
been abandoned for some length. There are instances of that kind, 
are there not? 

Mr. Stewart. Take Station F in New York, for instance; are you 
familiar with the facts connected with that station, Mr. Masten? 

Mr. Masten. Station F was formerly located on Third Avenue, 
near Twenty-eighth Street. The branch connection from the main 
line on Fourth Avenue was carried through Twenty-eighth Street 
into Third Avenue and into Station F. Upon its relocation on 
Thirty-fourth Street, between Lexington Avenue and Third Avenue, 
the old line from Fourth Avenue through Twenty-eighth Street was 
entirely abandoned and was lost. 

Mr. Murdock. What was the length of that ? 

The Chairman. It would be six blocks one way, would it not? 

Mr. Masten. No; from the point of connection on Fourth Avenue 
and Twenty-eighth Street the line abandoned was for the one block 
between Fourth and Third Avenues and about a hundred feet in 
Third Avenue. The two lines at Twenty-eighth Street, where the 
bends were taken out and straight connections inserted in their places, 
form a through line, and the break was made at Twenty-third 
Street, and a new line constructed over to Station F; relatively, I 
should say, an abandonment of TOO feet of old, unused line and the 
building of a thousand feet of new line. 

The Chairman. It is really, then, making a new junction? 

Mr. Masten. Yes; making a new junction and building a new 
track. 

Mr. Murdock. Was any portion of the TOO abandoned feet after¬ 
wards utilized by the Government? 

Mr. Masten. Not at all; it remains in the ground unused. 

Mr. Blackmon. Mr. Masten, could an occasion arise where they 
could use that for commercial purposes? Could it be connected up 
and used for other purposes than transmitting the United States 
mails? 

Mr. Masten. I hardly think so, because unused iron pipe in the 
ground rusts and deteriorates very rapidly. Its use in the pneu¬ 
matic-tube service would result in its constant lubrication and con- 

78419—13-5 


66 


PNEUMATIC-TUBE SYSTEM. 


» 


stant repair. When that constant repair ceases the deterioration is 
very rapid, and I should say that after a short period it would be 
unfit for any other use.. 

Mr. Murdock. It is true, Mr. Masten, that it worked a hardship 
on the companies when this line was abandoned ? 

Mr. Masten. I say that those are the things that tend to form the 
impression in my mind that the $17,000 a mile is not an exorbitant 
rental, and, in fact, tends to make up a reasonable rental under the 
conditions in which the contracts are entered into. 

Mr. Murdock. And these changes which work a hardship upon the 
companies would work a hardship upon the Government in case the 
Government owned the tubes, would they not ? 

Mr. Masten. Probably; yes. 

Mr. Murdock. Why not absolutely? 

Air. Masten. It is hard to express that in language, but it seems to 
me that if the Government owned the tubes and were operating them, 
they Avould not make these changes. Their location would be more 
fixed and stable. 

The Chairman. That is, before deciding upon removal they would 
take into consideration the question of cost ? 

Mr. Masten. Absolutely. 

Mr. Stewart. It would tend also to establish permanently the loca¬ 
tion of postal stations, and when we once got the tubes in the ground 
to those stations they would be very slow to make changes. I would 
like to say for the benefit of the commission and so that it will appear 
in the record that these changes that were made and that have been 
described here are made, of course, to meet postal emergencies that 
arise, and the company is required to make them under what the de¬ 
partment believes to be the terms of. the contract and the obligations 
of the company under those terms. 

The Chairman. The company, in other words, knows in advance 
that they might be called upon to make such changes? 

Mr. Stewart. The present management of the company did not 
enter into these contracts. They were entered into by a previous 
management of the company, and the company as it is now consti¬ 
tuted—at least, the executive officers—take issue with the depart¬ 
ment upon our construction of that part of the contract; but, never¬ 
theless, the department has maintained that attitude—that it has a 
right under the contract to require these changes without any re¬ 
muneration for abandoned tubes. 

Mr. Murdock. Mr. Masten, are there any branches of this pneu¬ 
matic-tube service of which you have knowledge which you would 
abandon, if you were an executive officer, by reason of small use ? 

Mr. Masten. There are several instances of comparatively small 
percentage of use of the efficiency furnished by the tubes, but none 
which I would abandon. The percentage of efficiency furnished by 
the tubes throughout the 24 hours leads to some queer results, and it 
does not indicate the relative use during the busy hours, and the form 
of construction has an effect upon that. In New York there are 
a great number of stations strung upon one line, there being eight 
in the East Side and nine in the West Side lines from the general 
post office to One hundred and twenty-fifth Street, which results 
in a comparative high utilization of the total capacity of the tubes. 
A construction, however, upon the radial system, as from a hub in 


PNEUMATIC-TUBE SYSTEM. 


6T 


the form of spokes leading out, will result in the same quantity of 
mail being carried and the percentage of use of the capacity very 
much smaller for the same mileage for the same number of stations 
connected and for the same amount of mail carried. The radial 
f 01 m of construction otfers the larger capacity. The elongated line 
furnishes a percentage, of use as compared to the total capacity which 
is detrimental to the radial form of construction. In Philadelphia 
and Boston and Chicago the lines are constructed practically under 
the radial form, leading in several different directions to the central 
or general post-office station. In New York the post office is in the 
extreme southern part of the city^ and the lines must reach nine or ten 
miles in one direction, touching eight or nine post offices, and the 
percentage of use shows there the highest for relatively the same 
amount of mail and the same number of post offices connected. The 
expense of construction is no greater, because a certain length of 
pipe will connect two stations, but in use the elongated line shows a 
higher percentage of use. 

Mr. Murdock. And that is material in the case of New York? 

Mr. Masten. That is very material. If it were possible to con¬ 
struct the lines upon the radial system in New York, the capacity 
would be increased. 

Mr. Murdock. I would like you to explain that, because it is 
rather contradictory to what you have just said. 

Mr. Masten. The capacity would be increased and the percentage 
of use would be lowered. 

Mr. Murdock. That is right. 

Mr. Masten. I will endeavor to explain that. Here are nine post 
offices upon one line reaching from the post office to One hundred 
and twenty-fifth Street in New York connected up in one elongated 
row or line. The mail for the section between I and J is carried or* 
directly between the post office and Station A, between the post 
office and O, etc., so that the maximum number of carriers containing 
mail for each one of these intermediate stations travels over the first 
section, the third section, the fourth section, and so on, and the use of' 
a number of carriers decreases by the number containing mail to 
delivered at the first station, further reduced by the mail to be de¬ 
livered at the second station, and further reduced by the number to 
be delivered at the third station, etc., until, on the last section, the 
use is confined to the number of carriers that contain the mail for 
the last station. On the radial lines- 

Mr. Murdock. Just a moment right there. On your first section* 
out of the general post office, you might have an efficiency of 60 per 
cent, and on the last section out of your post office on the same line 
you might have an efficiency of 4 per cent. Is that true ( 

Mr. Masten. That is true. Upon the first section you might have 
a hundred and upon your last section only four, and your average 
would be the difference of your four and the one hundred divided by 
the number of stations, bringing the total efficiency down to sixty. 

Mr. Murdock. Then it is absolutely mathematically correct to say 
that the longer your tube the less your efficiency will be at the outer 
end of the tube? 

Mr. Masten. The greater will be the use in your first section and 
the lighter the use in the extreme sections. 


68 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murdock. What I had in mind was the case of the Uphams 
Corners out of Boston. I do not understand why there should be 
only 2 per cent of efficiency on a tube such as that. Is it because it 
is an outlying station? 

Mr. Masten. It is an outlying station. It is the end of a line 
leading from the post office through the South postal station, the 
Essex Street station, the south end station, Station A, and the Rox- 
bury station, so that the percentage of use of the Uphams Corners 
station is the lightest, and between the post office and the South 
postal station is the heaviest. 

Mr. Murdock. Well, then, what was the radial proposition which 
you were describing when I interrupted you ? You gave an example 
of the elongated system as applied to New York. You were endeav¬ 
oring to show how you could increase the capacity of the tubes by 
radial system. 

Mr. Masten. By having nine independent spokes in the wheel 
instead of one elongated line containing the nine sections. The per¬ 
centage of use on each one of the nine lines leading from the hub 
would be the amount of mail carried on each one of these separate 
lines, and none of them would include the number of carriers or the 
amount of mail transported over any other one. 

The Chairman. You can not do that in New York on account of 
the city being on an island. 

Mr. Masten. You can not do it because the location of the post 
office is against the utilization of the radial system to the same extent 
that it is used in Boston. 

The Chairman. You might adopt it in Boston, but not in New 
York. 

Mr. Stewart. In other words, the system must be built to comply 
with the physical conditions of the city and the service. 

The Chairman. But the population runs from north to south in 
New York City. That is the greatest drawback. 

Mr. Murdock. I want to ask you this question, Mr. Masten: Under 
the terms of the franchise which the Pneumatic Tube Co. now has 
with the city of Chicago the tubes themselves go to the city in 1923. 
In your opinion, what would be the rights of Chicago in a matter of 
that kind if the Government should now acquire the tubes? 

Mr. Masten. The rights of the city of Chicago, in that contin¬ 
gency, would be the same if the Government owned the tubes as 
though a private corporation owned them, but the opportunity to 
have that franchise changed and the Government secure the owner¬ 
ship would be comparatively easy. In other words, the city of Chi¬ 
cago will unquestionably deal with the Government more liberally 
than it would deal with a private corporation. To illustrate a little 
further, the ownership of the city of Chicago in 1923 will consist of 
the tubes laid in the public streets and not to any of the terminals 
located on the private property leased by the Government or owned 
by the Government, so that the city of Chicago will have a lot of 
pipes in the streets underground which have no terminals or connec¬ 
tions and no feasible way to use them, while the terminals all being 
located on Government property or on property leased to the Gov¬ 
ernment will still be within its control. 

The Chairman. Is it not more than that? The Federal Govern¬ 
ment could possibly say to the authorities of Chicago, “ Unless you 


PNEUMATIC-TUBE SYSTEM. 


69 


give us the free use of tubes there will be no use for the tubes here¬ 
after. 

Senator Smith. The least Chicago could do would be to say, “ You 
can have them.” 

Mr. Hasten. If the city can make any use of these detached lines 
of iron tubes laid underground, without terminals, they might exact 
a price for them, but if they can not utilize them, it would be like the 
white elephant, they would be glad to give them away. 

Mr. Murdock. The city of Chicago gave a franchise that they con¬ 
sidered very valuable, and the men to whom they gave it consider it 
valuable, so valuable that they contract to turn these tubes over to 
the city of Chicago in 1923, and it seems to me material that if the 
Government is going to purchase those tubes we know, as a com¬ 
mission, precisely where the rights of Chicago are in that connection. 
I think, Mr. Masten, that the tubes would be more valuable to the 
ci + y of Chicago than you instance. 

There is another question I wanted to ask you. Mr. Hayden, in 
his testimony before this commission, suggested that inasmuch as the 
annual rental was $760,000, paid by the Government to the company, 
and that the cost of operation was $380,000, that if the Government 
took the tubes over we would pay the difference between $760,000 and 
$380,000, which would be $380,000. That is mathematically correct, 
is it not ? 

Mr. Hasten. I catch the figures, and our commission in 1909 made 
a calculation of the ratio of operating expenses to the maximum pay 
of $17,000 a mile and found, for instance, in Boston, the operator’s 
cost to be relatively 14.92 per cent of the cost of operation; the car¬ 
riers’ repairs and renewal, 11.29 per cent; and the repairs to the tube 
and machinery, 9.73 per cent, a total of 35.94: that the power cost 
22.76 and that the general expenses were 5.32, making a total cost 
of operation per mile of 64.02 per cent of the $17,000 a mile, leaving 
a balance of 36 per cent to go into other expenses and profits, as, for 
instance, practice, dividends, cost of raising the capital, and their 
own general company expenses. 

In New York we found those figures to represent a total of 91.82 
per cent, leaving only a little over 8 per cent to go into the profit, 
interests, general company expenses, and the cost of raising capital. 

In Chicago we found the figures to be 63.79, in St. Louis 68.67, 
and in Philadelphia 57.72. Relatively it might be claimed that the 
cost of operation—that is, the cost of labor and power—would be 
approximately 50 per cent, but I think our figures show that it is 
about two-thirds. 

Mr. Murdock. You found approximately what Mr. Hayden testi¬ 
fied to. Mr. Hayden says that the earnings of the company being 
approximately $400,000 a year, and that amount being 6 per cent on 
$6,600,000 a year, that therefore $6,600,000 is a fair purchase price 
for this property. Do you think that is a fair method of estimating 
the value of this property to the Government? 

Mr. Hasten. That is going into deep water for me, because I do 
not know whether an opinion that I would hold would be competent 
for your guidance or instruction. It probably would not be fair to 
estimate that the cost of these tubes to the Government should be the 
cost of replacing them, because there has been a period of experi¬ 
mentation, a period of exploitation and promotion through it alL 


70 


PNEUMATIC-TUBE SYSTEM. 


Forms of machinery have been revised and discarded for better. 
The cost of construction in various ways has been changed.- Old 
brass bends that were formerly a necessity have been discarded and 
iron bends substituted at a very large reduction in cost. The cost 
of any one single item in pneumatic tube operation—that is, of the 
carriers to contain the mail—has been very much reduced. 

Mr. Murdock. By the wav, one of these carriers, I understand, 
costs about $20 originally, and its annual repair is something close to 
that. Is that true? 

Mr. Masten. We found the cost, I remember, within a 12-months 
time was almost the original cost. 

Senator Smith. Do I understand that the net profit is $400,000 
a year? 

Mr. Murdock. Approximately that; $380,000. 

The Chairman. That is for all the companies except the Philadel¬ 
phia company. 

Senator Smith. Their franchises run for about 10 years longer? 

Mr. Stewart. The franchise, as I understand it, is perpetual in all 
cities except Chicago, and that ends in 1923. 

Senator Smith. Of course, in Chicago, with their franchise ending 
in 1923, it would be entirely unfair to capitalize their annual net profit 
•as though it were permanent net profit. The only way would be to 
•estimate it on a 10 per cent basis, and that is the present value of 
that annual profit for 10 years; that wouldrfix the present value of 
the property. Say, put it on a 4 or 5 per cent basis and then calculate 
the present value for 10 years for the sum which covered their profit. 
That would fix the value of their Chicago plant. 

Mr. Masten. I do not think their whole plant in Chicago expires 
in 1923. They will still own the terminals. 

Senator Smith. Anything they have that is a franchise with a 
deed of expiration could not be treated as a permanent investment, 
but should be treated as an annuitv for a limited number of vears in 
determining its value. 

Mr. Blackmon. The terminals would not be of value without the 
use of the tubes. 

Senator Smith. The terminals are real estate, are they not ? 

Mr. Masten. They are in the nature of improvements to real es¬ 
tate; upon leased ground to the Government, not to the Pneumatic 
Tube Co. 

Senator Smith. They put the improvements on? 

Mr. Masten. Yes; they put the improvements on. 

Senator Smith. But they probably have not the right to limit the 
improvement, and it belongs to the Government at the end of its 
contract. 

Mr. Masten. They can remove them at the expiration of their con¬ 
tract, and, in fact, they are required to remove them. In order to 
maintain an efficient service it is necessary for the tube companies 
to keep their terminals, their line, and all machinery in perfect re¬ 
pair, constantly as new machinery. They can not be operated unless 
the machinery is in first-class condition and practically as good as 
new. 

Senator Smith. That is a condition that does not need explanation 
to anyone, I should think. 


PNEUMATIC-TUBE SYSTEM. 


71 


Mr. Masten. No, sir; the air compressors, the electric motors, the 
blowers, and all those things have some value. 

Senator Smith. It would be very easy to estimate the value of 
them. The point I was making was that when they had a limited 
franchise it would not do to undertake to capitalize on the basis of 
an income from a limited franchise. It would have to be reduced 
to its present value. 

The Chairman. Unless they were using the service for something 
else. Mr. Masten, do they use it for anything else except the trans¬ 
portation of the mails ? 

Mr. Masten. This particular size of tube is not used anywhere ex¬ 
cept for mail service. 

The Chairman. Do you find that there has been much improve¬ 
ment in the service since the report of 1908 was made? 

Mr. Masten. I find that some improvements in machinery have 
been made. At the time this report was made the company was 
really experimenting with rotary blowers which cost much less than 
air compressors and are more economical to operate. The experi¬ 
ments for more than two years with those blowers have fixed them 
as standard for succeeding installation. That reduces the cost of 
primary installation of pneumatic tube service. It inures to the 
benefit of the company by reducing the cost for power. 

Mr. Stewart. How about the dispatching and receiving appa¬ 
ratus ? 

Mr. Masten. That has not undergone very many changes since 
the date of the commission’s report referred to; but the continued 
use since that time has demonstrated the present form of terminal 
machinery to be the best, and has fixed that machinery as standard. 

The Chairman. There is one thing I should like the commission 
to ascertain, and that is information with regard to what is being 
done in Europe; whether the companies abroad have made any im¬ 
provements, and if they have put the service in effect. How can we 
arrange for securing the information ? 

Mr. Stewart. I can get that information through our depart¬ 
ment. 

The Chairman. That ought really to be brought up to date, then, 
Mr. Stewart. 

Mr. Stewart. I will see that that is done. 

Mr. Blackmon. Mr. Chairman, I believe the House meets at 12 
o’clock. How long does the commission wish to remain in session 
this morning? 

The Chairman. We can adjourn and meet at a later hour to-day. 
As it is now 12 o’clock, we will take a recess until 2 o’clock, if that is 
agreeable to other members of the commission. 

Thereupon the commission, at 12 o’clock noon, took a recess until 
2 o’clock p. m. 

after recess. 


Pursuant to the morning adjournment, the commission met at 2 

o’clock p. m. T . x i o -i-i -d 

Present: Senators Guggenheim (chairman) and Smith, Kepre- 

sentatives Blackmon and Murdock, and Second Assistant Postmaster 
General Stewart. 


72 


PNEUMATIC-TUBE SYSTEM. 


STATEMENT OF MR. JOHN M. MASTEN—Continued. 

The Chairman. Now, Mr. Masten, you might go ahead and give 
us the benefit of such information as you have on the subject. 

Mr. Masten. Mr. Chairman, I appeared before the committee 
largely to answer any questions that might be asked me concerning 
the pneumatic-tube mail service that had been installed in any of the 
five cities in which it is in operation. I have no general statement 
to make in regard to the service, but shall be pleased to answer any 
questions. I might say, however, that the question of the large tube 
has been given a great deal of consideration in the department back 
as far as 1896 when I was a member of the committee to make an 
examination for such a proposed service in Philadelphia. From that 
time on I have familiarized myself more or less with all of the big 
tube projects that have been offered to the department. It can 
certainly be accepted as a fact that the 24-inch tube can be installed 
indiscriminately wherever tube service may be needed, but only where 
the demand is for something: which the 8-inch tube will not supply. 
The great profit in the postal service is in the first-class mail, and it is 
that which is given preference in all of the operations of the post 
office. The second, third, and fourth class matter, with the possible 
exception of the daily newspapers, is relegated to the rear; that is, 
to the time when the first-class mail having been taken care of, the 
clerical force can be put to work on the other classes of mail. The 
great profit from first-class mail has induced the consideration to be 
given to the workable size of a tube that will carry the first-class 
mail, depending upon a slower and cheaper means of transportation 
for the other classes, but the slower and cheaper forms of transporta¬ 
tion do not apply when a very congested city is under consideration, 
and where the quantity of mail to be handled is very large, and where 
the frequency of surface transportation is great. New York City I 
specified a while ago as an example where the large tube would be 
economical and profitable to the Government if it could be installed 
at all, for the very reason that there is great congestion in the streets 
and an exceptionally large quantity of mail to be handled, aggregat¬ 
ing some 377 tons a day when we made our examination in 1908, and 
because of this bulk a very frequent service. 10 or 15 minutes by 
wagon. 

Mr. Murdock. Mr. Masten, there seems to be somewhere in the 
postal business lap service so far as wagon and pneumatic-tube 
transportation is concerned. Do you know of any such instance 
where between two points mail is carried in Avagons and in tubes? 

Mr. Stea\ t art. Where they supplement each other. Is that what 
you mean, Mr. Murdock? 

Mr. Murdock. Yes; or where they might duplicate each other. 

Mr. Masten. There is no example in our service where the 
pneumatic-tube service is involved where there is not some wagon 
or electric-car service alongside of it. For instance, the pneumatic- 
tube service is only contracted to be operated 20 hours a day, and for 
four hours other means of transportation is used—wagons, auto¬ 
mobiles, or electric street cars. That comes from the fact that the 
special provision must be made for the letter mail and the pneumatic 
tube having been provided largely for that service, and other cheaper 


PNEUMATIC-TUBE SYSTEM. 73 

and slower means for transportation in the other classes of the mail 
which do not require so much expedition. 

Mr. Murdock. You just mentioned a service which has not been 
brought out at all in the hearings, and that is the electric-car service, 
which is a very expeditious service, as a matter of fact. Is it not pos¬ 
sible to use the electric-car service in all these large cities, say New 
York, as against the pneumatic-tube service without serious expedi¬ 
tion loss? 

Mr. Masten. It is, as a matter of fact, used in all of the principal 
cities between the main offices and the branch offices and the subur¬ 
ban points in the vicinity of these large cities, but except in a few 
cases it is not used for the carrying of all of the mail; for instance, in 
Omaha, Nebr., where I have recently been located, they absolutely 
discontinued all of the wagon service and substituted the electric-car 
service for it from the main office to the big railway depots and to all 
of the post-office stations and to South Omaha, the big packing dis¬ 
trict. In Chicago there is no screen-wagon service employed in the 
city except between the main office and the depots. All other service 
to the branch office, to the stations throughout the city, is performed 
by the electric mail cars, except to nine of the branches which have 
in addition the pneumatic mail service. 

The Chairman. Would not motor cars make better time than the 
tram cars in that the tram cars run on schedule ? 

Mr. Masten. The electric mail cars run on absolute fixed schedules 
which require their employment in both directions and at a good rate 
of speed—6, 7, 8, and even 10 miles an hour in the outlying districts, 
and at a very low rate, approximately 1 cent per foot per mile: that 
is, a 20-foot car costs 20 cents per mile run. 

The Chairman. A motor car would not cost anything like that, 
would it? 

Mr. Masten. The cheapest service we have of motor cars is 22| 
cents in the districts of upper New York. In St. Louis it was 30^ 
cents. 

The Chairman. Then that system is more expensive. 

Mr. Masten. More expensive than the electric mail cars. 

The Chairman. Would it be as prompt or as quick as the other? 

Mr. Masten. Hardly as reliable. The electric mail-car service is 
only reliable on account of the operation of the mail cars being a 
part of the general operation for passengers, and it receives the same 
close attention from all of the inspectors of the company and the 
company’s operators. 

The Chairman. Suppose the motor cars were owned and operated 
by the Government; would that not be cheaper ? 

‘Mr. Masten. I think the one instance of use in New York at 22J 
cents will not be secured again, because it was the attempt by a large 
corporation to secure a very hard test of the use of their cars, a hard 
test involving long routes and quite frequent operation, over half an 
hour. 

Mr. Murdock. From where did those autos run ? 

Mr. Masten. They operate from the Grand Central postal station 
at Forty-fifth Street and Lexington Avenue up the East Side to 
Fordham station, about 10i miles up the west side to Washington 
Bridge; also about 10 miles from the Grand Central postal station. 


74 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murdock. Would not that be a fair comparison now between 
those and the line which runs up the West Side of New York, a pneu¬ 
matic-tube line? If the committee will notice, the line of autos passes 
along the East Side of Manhattan Island, and on the West Side of 
the island is a line of pneumatic tubes. Now, it seems to me that it 
would be a very fair comparison there on cost between what, it costs 
by auto on the East Side and by pneumatic tubes on the West Side, 
difference of congestion of traffic being taken into consideration. 

The Chairman. If these parties made a contract with the Govern¬ 
ment to move their mail, they necessarily expected to make a profit. 
Now, why should not the Government do it on its own account? 

Mr. Murdock. There is no reason for saying that the Government 
can not do it as cheaply as a private contractor. 

Mr. Stewart. In this case we would use our own power and em¬ 
ploy the men now employed in the post offices and stations to some 
extent at least in handling the carriers, and we could reduce the cost 
there a little, although we would have to pay the men that we em¬ 
ploy specifically for this purpose a higher rate per annum. We could 
not get help as cheaply as they do, but we could use our present 
emplovees to some extent on the tube service. We can double up a 
little. 

Mr. Murdock. Mr. Masten, for the purpose of enlightening myself, 
and I hope members of the committee, I want to lake you into actual 
operation of the New York postal system: If I drop a letter in at 
the general post office downtown directed to you at one of the promi¬ 
nent hotels on Times Square, and I put a special-delivery stamp on it, 
does it go into the tube? 

Mr. Masten. Absolutely. 

Mr. Murdock. If it is an ordinary letter with a 2-cent stamp on 
it, are there numerous ways in which it may reach you at the hotel 
on Times Square? First, may it get also into the tube, although it 
does not carry the 10-cent special-delivery stamp? 

Mr. Masten. It will during the time the tube is operated. It is 
operated to cover all of the hours that the special-delivery service is 
in operation; that is, from T to 11 o’clock at night. 

Mr. Murdock. Is there any possibility of that letter getting on an 
electric car and reaching its destination by electric car? 

Mr. Masten. Not between the general post office and Times Square, 
because there is no electric-car mail service in New York City, and no 
electric automobile service except above Forty-fifth Street. There 
is some automobile service below Forty-fifth Street, between the post 
office and the Pennsylvania and the Grand Central. The contractor 
for the screen-wagon service has obtained permission and uses about 
30 automobiles in that service out of a total of 150 equipment that 
he furnishes. About one-fifth of his equipment is automobiles, and 
that letter might, in transit between the main office down town and 
Times Square, go by automobile and not by the tubes. 

Mr. Murdock. In any event, would it go by screen wagon? 

Mr. Masten. It might go by screen wagon if carried during the 
hours that the tube is shut down; the five hours from 11 o’clock at 
night to 4 o’clock in the morning, but between 4 o’clock in the morn¬ 
ing and 11 o’clock at night it would be carried by the tube. All of 
the first-class mail in New York is carried by the tube in local distri¬ 
bution in the city. The first-class mail which is not carried by 


PNEUMATIC-TUBE SYSTEM. 


75 


pneumatic tube is that for dispatch on the railroad lines out of New 
York. That is the excess of mail which the tube will not provide 
sufficient capacity for. It is the mail for dispatch on the railroads 
at the Grand Central and the Pennsylvania Stations. There we have 
a fixed time of dispatch, a fixed time of leaving the railroad depot, 
and we make the dispatches from the post office down town on Park 
Row and from the Hudson terminal at a nearby location by screen 
wagon and automobile up to the time that they can make the trip 
and connect with outgoing trains. After that time we make sup¬ 
plemental dispatches by the pneumatic tube, and that comprises the 
mail which is advanced by pneumatic tube, because up to the time 
of this last or supplemental dispatch the tube does not actually 
advance that mail going out on the railroad trains, because we fix 
it so that the dispatch is mailed in time to connect with the outgoing 
trains. We will take an example of the big mail train going out 
on the New York special, leaving at 9.30 o’clock p. m. for Chicago. 
The last available dispatch from the Hudson Terminal leaves at 8.35. 

Mr. Murdock. Are you speaking of screen wagons? 

Mr. Masten. Yes; of screen wagons. That mail leaves the general 
post office at 8.40, reaching the Grand Central at 9.15, about 40 
minutes transit time from the post office. Up until 8.55 p. in. at the 
Hudson Terminal a supplemental dispatch is made by pneumatic 
tube, which passes through the main office, through Station D and 
Station F, and so on up to the Grand Central postal station. 

Mr. Murdock. Being relayed at each station? 

Mr. Masten. Yes; being relayed at each station, and reaching the 
Grand Central postal station at 9.15. It is relayed at the inter¬ 
mediate points, and each one of these intermediate offices makes dis¬ 
patches also bv tube to this same train on the New York Central line. 
That additional mail comprises between ten and twelve thousand 
letters every night. Those letters all make the Overland connection 
to California, to Los Angeles, Portland, and all the intermediate 
points, and every one of those 12,000 letters every night makes 24 
hours’ time, because the last available dispatch by other means has 
left the post office at 8.40 and the Hudson Terminal at 8.35. So that 
represents in that one particular case a gain of 24 hours in the late 
letters, which amount to 24 hours in time. 

Mr. Murdock. You say that the number of letters nightly is some¬ 
thing like ten to twelve thousand? 

Mr. Masten. There are ten to twelve thousand letters after that 
supplemental dispatch. 

Mr. Murdock. That is 40 minutes of very rapid dispatch there of 
the mail from the down-town section ? 

Mr. Masten. The Hudson Terminal commences this dispatch at 
8.55. The post office will let the Hudson Terminal dispatch go 
through, and then they will dispatch theirs at 9 o’clock. Madison 
Station will make its dispatch after the last of the Station D carriers 
are through; then Station F will make its dispatch and they will 
go into the Grand Central station following in a continuous stream, 
so that the final carrier must be in at the Grand ( entral station at 
9.15. The process of loading the pouches on the train consumes about 

15 minutes. . 

Mr. Murdock. That is a very clear statement showing that the let¬ 
ter mail down town in the day gets expedition by reason of the pneu- 


76 


PNEUMATIC-TUBE SYSTEM. 


matic tube, but the mail which was dispatched in the boxes and the 
post office previous to 8.35 is not expedited by these tubes. 

Mr. Masten. No. It was found in our investigations that over 
50 per cent of the first-class mail dispatched in post offices in New 
York was for local circulation, and all of that receives expedition 
every day, because from the time it is posted in the letter boxes the 
collections are made every hour. It goes into the postal station, it 
is postmarked, distributed, and dispatched as fast as the distribution 
can be accomplished to its destination. That large and important 
local mail receives this constant treatment. There are stations in 
the city that have 10 carrier deliveries in the day; and the process 
of sorting out the mail in each one of the branch stations requires 
time before it can be taken out by the carriers for actual delivery at 
the house addresses. Its receipt at the stations and branch offices 
constantly, therefore, keeps the force employed and prevents con¬ 
gestion. I studied that question very thoroughly in the two and a 
half years that I was superintendent of mails in the Brooklyn 
office, where a city of more than a million and a half of population s 
received all of its downtown mail by pneumatic tube and sent all 
of its mail by pneumatic tube. Use there had to be made entirely 
of the New York post office facilities, because Brooklyn has no 
railroad stations. The mail is all sent to New York and handled 
in connection with the New York mail, receiving the same treat¬ 
ment as the New York post office mail. The pneumatic-tube service 
there was of great advantage, because hundreds of dispatches made 
daily would be made by tube later than they could possibly be made 
bv wagon or automobile. 

•/ _ o 

The Chairman. You have had a great deal of experience, Mr. 
Masten. Now, there is a clause here reading as follows: 

The present contract under which the tube companies are performing mail 
service will not expire until June 30, 1916. During that period there should be 
ample opportunity for companies to perfect the system and for the Post Office 
Department to observe the effect upon the postal service. Further, during 
that period it is possible that other methods of transportation may be devel¬ 
oped, or improvements made, so as to change entirely the outlook as it now 
appears. 

That was your conclusion at that lime. I should like to get the 
benefit of your knowledge at this time. 

Mr. Masten. The time since that inquiry was made has witnessed 
a marvelous development in the automobile industry, and its applica¬ 
tion to the business needs. in the different cities, while before that it 
was largely for social use; but notwithstanding that very general de¬ 
velopment of the automobile for traffic purposes, its introduction in 
the post office has been very slow, because it lias proven very ex¬ 
pensive in operation. I should say that to-day the automobile was 
not in a condition of actual development for universal application 
to the postal service, except where the Government was prepared to 
go to very much greater expense in the handling of its mails than 
for horses and wagons. The greater expense is necessary in places, 
and is justified in places where the horse and wagon are not effective 
or efficient, but in a city like New York, where the pneumatic tube 
service covers all of the post offices on Manhattan and carries the 
important mail, it is not necessary to go into the automobile service, 
because the other classes of mail do not require expedition enough 
to go to any increased cost. 


PNEUMATIC-TUBE SYSTEM. 


77 


The cost of the horses and wagons has been increasing, so that now 
every mile of service by horse and wagon that is performed in 
New York costs, below Forty-fifth Street, an average of 38J cents per 
mile operated—big and little wagons. Advertisements are now 
pending for the receipt of proposals to perform the service for four 
years, and it is so arranged as to call for proposals to perform auto¬ 
mobile as well as horse and screen wagon service. Within a short 
time we will know something more about the increased cost, since 
the lettings of four years ago for the screen-wagon service in that 
city. It is generally stated to ouE people that the cost will be 
greatly increased, and it is possible that the cost for the horse and 
wagon service will be so great that the automobile may be selected. 
We may get up to the point where the cost will be almost the same. 
Very much frequency in the screen-wagon service or automobile 
service makes it almost as expensive as the pneumatic-tube service. 
In our investigation it was found that it only cost for each carrier, 
supposed to contain 450 letters, a half cent a mile for their operation. 
Four hundred and fifty letters might be all the load that the screen- 
wagon service would have to carry on one of its trips, at a present 
cost of 38J cents for every mile traveled as against the half a cent 
for the pneumatic tube. When great frequency is necessary the 
pneumatic-tube service becomes, in its comparison of cost, very 
favorable. 

Mr. Stewart. Advertisement by the department each year for 
wagon service has included a paragraph inviting the submission of 
proposals also for service by automobiles. Do you recall in how 
many instances the department has received such proposals? 

Mr. Masten. I do not know of a single one that was voluntarilv 
offered. We have had to go out and dig up those that have been 
secured. 

Mr. Stewart. There are automobiles used to some extent in San 
Francisco. 

Mr. Masten. There are two automobiles employed in San Fran¬ 
cisco. We finally secured them in order to see if they would give 
an improvement that would justify a larger cost involved in their 
general installation. 

Mr. Stewart. How about Los Angeles? 

Mr. Masten. There are none there. 

Mr. Stewart. And at St. Louis? 

Mr. Masten. One company in St. Louis similarly secured after 
persistent efforts. 

Mr. Stewart. But nothing in Chicago? 

Mr. Masten. Nothing in Chicago. Several efforts have been made 
in Chicago, but never have been reduced to any definite form. 

Mr. Stewart. We secured a renewal of proposal in Milwaukee and 
Detroit. 

Mr. Masten. Yes; both at an increased cost after a term. 

The Cairman. Do you find that they can use the horse and wagon 
at all times where they could not possibly use the motor car: in 
times of snow and slush? 

Mr. Masten. Yes; we then give an advance time to the horse and 
wagon contractor. Sometimes in very heavy storms we cut off one 
hour in the time of the advancing of the particular mail and give 


78 


PNEUMATIC-TUBE SYSTEM. 


the screen-wagon man an hour's extra time to get to the depot. If 
we did not have the pneumatic tube service tlie letters would have 
been delayed. 

Mr. Blackmon. In the business district of New York City how 
many mail deliveries have you? 

Mr. Masten. Take the district at Times Square, which Mr. Mur¬ 
dock has referred to; they have 10 deliveries there. There are 
10 deliveries also at all of the stations until you get to Eighty- 
fourth Street Station—Station W. Then above there they get 8 to 
Station L, at One hundred and twenty-fifth Street. Down in the 
Wall Street district they get 8. 

Mr. Blackmon. How many deliveries have they in the residential 
portion of New York City? 

Mr. Masten. At One hundred and twenty-fifth Street in the busi¬ 
ness part of the district they get 8 and 7. and in the extreme limits 
they get 4. 

The Chairman. What is the minimum ? 

Mr. Masten. Four in the upper part of the city. 

Mr. Muroock. Mr. Masten, in your report formerly made to the 
Government on page 27 I find this notation "under the subhead— 

INADEQUACY. 

Boston .—Between 6 p. m. and 6.30 p. m. and again between 10 p. in. and 
10.30 p. m., on the line between the general post office and the South Station, 
the volume of first-class mail for dispatch is so large that 10 or 15 per cent is 
sent by wagon as a matter of convenience in order to avoid breaking bulk 
and repoucliing the mail; yet on this same line the postmaster reports that 
the total use of the tube is only 33 per cent of their capacity during the 24 
hours of operation. Also at the particular time mentioned the capacity used 
between 6 p. m. and 6.30 p. m. is only about 60 per cent, and between 10 p. m. 
and 10.30 p. m. about 29 per cent. 

Now, what is the explanation for that failure to use that tube’s 
capacity? 

Mr. Masten. It requires somewhat of a technical description in 
order to understand it, but we find that in actual practice we can not 
load the carriers. We can not tie out the mail and transport it over 
to the tube tables and load the carriers as fast as the operator can 
take them up and dispatch them. That is one of the principal 
reasons why we never have called for the extreme maximum service 
that was available; that is, 10 carriers a minute. We find that 4 
carriers a minute is practically all that can be used. We can not 
get mail up to the end of the tube and into the carriers faster than 
about 4 a minute. 

Mr. Murdock. Where is the weak point in that failure? Why 
can not you do that? 

Mr. Masten. Each letter is sorted out in distributing cases to boxes 
representing post offices in railway post offices, and when filled, or 
when the time of closing arrives, these mails are taken out of one 
lot of pigeonholes for another and tied in bundles with facing slips 
on the top indicating their destination. As these are tied out, each 
distributor tying out his own cases, probably with the helper when 
the time of tying out, comes, it is put into the baskets and these 
baskets are carried over to the tube tables. There, as far as pos¬ 
sible, the separation for a particular train is retained. 


PNEUMATIC-TUBE SYSTEM. 


79 


Mr. Murdock. In actually tying out bundles from the pigeonholes 
does a package of letters, all for Chicago, Ill., for instance, go into 
the tube without being broken? 

Mr. Masten. That identical package goes. That is the unit. 

Mr. Murdock. The man at the end of the tube does not untie 
that bundle, but he puts this little package of letters into a carrier 
and away it goes? 

Mr. Masten. He puts it into a carrier with other packages until 
the carrier is filled; then the lid is screwed on, the lever locked, 
and it is placed into the tube. About four a minute is the limit that 
we have been able to reach. 

Mr. Murdock. As a matter of fact, you can not supply the tube 
with enough to keep it going, can you ? 

Mr. Stewart. The capacity is so great that it exceeds the capacity 
of the men at the cases. 

Mr. Murdock. Why should any of the mail in Boston go from the 
post office to the South Station by wagon ? 

Mr. Masten. A very good illustration. The service in Boston is 
not only a service between the post office and the south station, or the 
post office and the north station, but it is a service from all the post 
offices connected. The mail that originates at one place is not all 
the mail to be handled, but at the particular hour that the main 
office is making a dispatch to the south station there is mail arriving 
at the north station, and in practice it has been the rule to send the car¬ 
riers containing a particular dispatch together, so that at the other end, 
where the transforming of the mail is made from the carriers into 
the pouches and so on into the train, the mail will fairly be together, 
consuming less time for examination by clerks at that point, so that 
the post office uses a certain number of minutes; then the north sta¬ 
tion uses a certain number of minutes to get that mail in the same 
dispatch for the south station. In the process of accommodating 
both places we probably do not utilize every minute, and conse¬ 
quently we drop below the capacity of the tube to only 60 per cent 
that the postmaster reports is used. Now, some mails go in such a 
form that the work of pouching them at the post office can be done to 
the saving of clerical force at the depot post office, and intelligent 
management between those points would suggest that they should 
at the post office put those mails, when they are in that special quan¬ 
tity, in pouches labeled to their particular destination and dispatch 
them by wagon which is going at that particular hour to carry other 
mails. It is probably going earlier than the last dispatch bv the 
tube, some five or six minutes earlier. There is always a later dis¬ 
patch by the tube than by wagon. I think it is 20 minutes later be¬ 
tween the post office and the north postal station, and the north pos¬ 
tal station being an inconvenient place for the wagons to get in, 
congested streets between, and it requires a longer time for the 
wagons in transit. 

Mr. Murdock. That is, both the Boston post office and the north 
station use the same tube to the south station, and while the Boston 
station will use the tube for a while, then it must give way to let the 
north station use the tube? While the north station is using the 
tube, some of it is pouched and sent by wagon? 

Mr. Masten. That is my observation, and that is my belief. T 
have worked with these problems in organizing the work at the post 


80 


PNEUMATIC-TUBE SYSTEM. 


office so as to get intelligent use of the tubes, but, after all, the daily 
operation is in the hands of the postmaster and his superintendents, 
and I see it only occasionally. 

The Chairman. You believe the tube has some advantages, then. 

Mr. Masten. Yes; I do. I am consistent in that belief. I have 
seen a place for it and have recommended it in every commission 
that I have been put on. 

Mr. Blackmon. What improvements, Mr. Masten, have been 
made in this since you filed your report ; that is, in the way of equip¬ 
ment, and so forth? 

Mr. Masten. Mainly in confirming the use of certain kinds of ma¬ 
chinery, which were begun about that same time, about the time of 
our report; in introducing, as I explained this morning, the use of 
rotary blowers instead of the piston compressors, and the use of 
certain open receivers instead of the other form of closed receivers; 
the use of a slightly different carrier of tougher steel and better con¬ 
struction has reduced the cost of it. 

Mr. Blackmon. In the event that the Government should under¬ 
take to extend this service, do you think there is anything in the sug¬ 
gestion that it would be advisable to have the- tube so that you could 
use both tubes at the same time, which idea was brought out here 
this afternoon? 

Mr. Masten. I have heard that story ever since 1896. It is very 
plausible in the mouth of an inventor, but it never has been worked 
out, and it is not capable to-day of being worked out. For instance, 
in every pneumatic-tube system there must be a steel carrier, or a 
carrier of some similar material, to contain mail, because to put it 
into the tube without being inclosed in some form of carrier would 
mean that it would be ground up by the friction in passing through 
the tube. The construction of these carriers, then, has always to 
withstand a large amount of use, as well as to stand the force of the 
shock in coming to a stop. As these carriers are used to contain the 
mail and continual use is necessary, they must again be returned. 
If you would employ the tube in that way between the post office 
and the Grand Central Depot in the same direction for 30 minutes 
you would have no carriers at your initial point to be used. So that 
in practice it has been found better to use your carrier and return it 
with mail or empty. There is one man in the New York system who 
sits at the telephone in Fifty-first Street constantly, whose task it is 
to get reports and oversee the distribution of the carriers, to supply 
carriers at the places where the mail is running heavy, and take them 
away from the places where it is not running heavy. It is a physical 
impossibility to operate a single line of pneumatic tube in one direc¬ 
tion and have an efficient service at the same time. 

The Chairman. You mean in two directions, do you not? 

Mr. Masten. No; to operate it in only one direction and have an 
efficient service. It must be out and back, because your delivery of 
mail is not all at one point. 

Mr. Blackmon. When this carrier comes in loaded, you return it 
loaded ? 

Mr. Masten. We return it loaded if we have any mail at that par¬ 
ticular time to dispatch; if not, we return it empty at the first oppor¬ 
tunity. 


PNEUMATIC-TUBE SYSTEM. 


81 


Mr. Murdock. That is a freight-car proposition. 

Mr. M aston. Surely; you can not have all your traffic in one direc¬ 
tion ; you have to have it both ways. 

The Chairman. Mr. Masten, after further reflection there may be 
some other points that you think the commission should know of. 
We would appreciate it if you would keep in touch with Mr. Stewart, 
so as to let us know in the event there is any other information that 
you think we should have. 

Mr. Masten. I shall do so. 

Mr. Blackmon. I would like to have Mr. Masten go with us when 
we inspect the tube service between the House Office Building and the 
Capitol. 

The Chairman. That is a good suggestion. 

Mr. Masten. I shall be glad to go with you on that occasion. 

STATEMENT OF MR. R. G. COLLINS, OF NO. 2 RECTOR STREET, 

NEW YORK CITY, REPRESENTING THE UNITED STATES PNEU¬ 
MATIC CO. 

Mr. Collins. Mr. Chairman and gentlemen, we are here not at all 
in connection with the purchase of the existing lines. We were not 
exactly familiar with the scope of the investigation, but we wanted 
to be here to present any information you might desire in line with 
these larger tubes. 

Mr. Murdock. In the hearing of 1908, which has been published as 
a document, I find in the report of the committee a paragraph as 
follows: 

There have also appeared before the committee representatives of the United 
States Pneumatic Co., of 74 Broadway, New York City, with a definite proposi¬ 
tion for the construction, for the operation, or for the sale of an 18-inch mail 
tube between the general post office and the Union Station at Washington, D. C. 
They say that the terminals and the carriers will be operated under patents 
owmed and controlled by the United States Pneumatic Co. The system is oper¬ 
ated on the vacuum system, for which they claim certain advantages. 

What advantages other than the vacuum principle does your com¬ 
pany claim that the existing tubes in Boston, New York, and Phila¬ 
delphia do not have? What devices do you have in your system that 
they do not have ? 

Mr. Collins. None. The principal claim that we make is furnish¬ 
ing a larger tube than is practicable under the compressed-air system, 
and by furnishing a larger tube, permitting the carrying of anything 
that the Post Office Department handles without breaking bulk, and 
thereby saving considerable labor in sorting the mail at each end. 

Mr. Murdock. Now, are there more than the three methods of the 
pneumatic-tube transmission that have been mentioned here, namely, 
compressed air, second and rotary wheel method, which Mr. Masten 
mentioned, and the vacuum proposition? 

Mr. Collins. I believe there is an electric-car proposition, but we 
do not know very much about it. 

Mr. Murdock. Does your messenger, or carton, or whatever it is 
called, travel on rails? 

Mr. Collins. No; it travels on wheels of its own. It lias wheels 
placed at each end of the carrier and projecting a very slight amount, 

78419—13-6 


82 


PNEUMATIC-TUBE SYSTEM. 


about half an inch, below the carrier itself, so that almost the full 
size of the tube can be utilized for this carrier. 

Mr. Murdock. And you exhaust the air, then, in front of your 
transmitter? 

Mr. Collins. In front of the carrier. 

Mr. Murdock. Is there a tube of that kind in existence now between 
the House Office Building and the Capitol? 

Mr. Collins. There is. 

Mr. Murdock. Was it constructed after an appropriation had been 
made for it, or before an appropriation had been made? 

Mr. Collins. I believe it was constructed after the appropriation 
had been made. 

Mr. Murdock. Has it been paid for? 

Mr. Collins. I believe so: yes, sir. 

Mr. Murdock. Under whose control is it ? 

Mr. Collins. The operation of it, do you mean? 

Mr. Murdock. Yes. 

Mr. Collins. I do not think it is being operated. 

Mr. Murdock. Why not? 

Mr. Collins. I think appropriations have never been made for 
operating it. It was placed there for service between the buildings 
and very largely to give the public and every one interested an oppor¬ 
tunity of seeing what the system meant and could do. 

Mr. Murdock. Do you know how much it cost ? 

Mr. Collins. Do you mean what was paid for it? 

Mr. Murdock. Yes. 

Mr. Collins. The appropriation was $1,000. 

Mr. Murdock. The actual construction of it was far in excess of 
that, was it not? 

Mr. Collins. But you asked me what was paid for it. Of course, 
that was merely a nominal sum. 

The Chairman. What do you call it, a demonstration plant? 

Mr. Collins. It was put in primarily for that purpose, I judge; 
but there it is, ready for use. It will carry now any mail except 
the very largest No. 1 sacks. 

Mr. Murdock. What is the diameter of that tube? 

Mr. Collins. Eighteen inches. 

Mr. Murdock. And it is entirely serviceable? 

Mr. Collins. Absolutely. 

Mr. Murdock. It is now ready for operation? 

Mr. Collins. It was operated this morning. 

Mr. Stewart. Where do you get your power ? 

Mr. Collins. From the Government service, I believe. 

Mr. Murdock. To whom have you appealed to have it operated, 
if to anyone? 

Mr. Collins. I am not familiar with any of the details. I do not 
think that anyone has been appealed to to operate it. Of course, it 
is over there; and the company hoped, I suppose, that the service 
would be extended between all the different Government buildings; 
and I believe by means of a pneumatic service considerable money 
could be saved and considerable time saved; also a more satisfactory 
service inaugurated by using the pneumatic tube. 


PNEUMATIC-TUBE SYSTEM. 


83 


Mr. Murdock. In the testimony which I just read you there was 
a reference to the offer to construct a tube between the Union Station 
and the post office at Washington. Did anything ever come of that? 

Mr. Collins. No; it did not. 

Mr. Murdock. Did your company offer to construct a tube at 
Cincinnati, Ohio? 

Mr. Collins. I think not; I am not familiar with any such offer,, 
at least. That tube is 18 inches in diameter, and. as I say, it carries, 
everything but a No. 1 mail sack. 

Mr. Murdock. Do you subscribe to the proposition that has been 
repeated here over and over again that a perfect system of under¬ 
ground mail transmission in this country would consist of a tube 
for the quicker expedition of first-class mail and a second tube of 
larger diameter for the less expeditious dispatch of second, third, 
and fourth-class mail? 

Mr. Collins. I do not know. That is a matter, perhaps, that 
could be more satisfactorily talked of by the Post Office Depart¬ 
ment. I can only say that we recommend a 24-inch tube, which is 
equally capable of handling the small first-class matter as well as 
the larger packages. 

Mr. Murdock. Is the larger tube less expeditious than the smaller 
tube? 

Mr. Collins. No; a schedule of 30 miles an hour can be operated 
very satisfactorily. 

Mr. Murdock. What have you to say regarding the proposition 
that when at a relay station one of the larger carriers arrives, it 
makes it more difficult to transfer to another tube and move it on; 
thus increasing the cost of transmission and operation? 

Mr. Collins. It is absolutely unnecessary. In handling the larger 
carriers the installation should be made, and undoubtedly would bo 
made, in such a way that it could be performed just as quickly as 
the smaller carrier. I do not suppose that the larger carriers could 
be loaded and sent off in the tubes quite as fast on a test, perhaps, 
as the small carriers, but the carrying capacity in cubic feet would 
be considerable. I think the carrying capacity of a 24-inch tube 
would be 16 times that of an 8-inch tube with one half the number 
of carriers. 

Mr. Murdock. Did you hear the testimony this morning? 

Mr. Collins. No; only a small portion of it. 

Mr. Murdock. Would there be an appreciable increase in the cost 
to the Government for terminals when a large tube is used as against 
the cost for terminals when a small tube is used? 

Mr. Collins. Proportionately large, do you mean? 

Mr. Murdock. Disproportionately large in the cost of terminals. 

Mr. Collins. No, sir; there would not. 

Mr. Murdock. I gathered from the testimony this morning that 
the larger tubes necessitate larger terminals and considerable more 
cost to the Government. Am I correct in that, Mr. Masten? 

Mr. Masten. That is my belief. 

Mr. Collins. That is what I mean by proportionately larger. Of 
course, the whole system of 24-inch pipes means 24-inch ways every¬ 
where, where the 8-inch requires 8-inch, but there is no undue com¬ 
plication or unreasonably expensive apparatus necessary. 


84 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murdock. You feel that your system could give the Govern¬ 
ment a 30-mile speed? 

Mr. Collins. I think there is no question about that. The tube 
down here has been operated up to 90 miles an hour. Of course, 
that speed would not be adopted in regular practice. It seems to 
me the very fact that carriers only need be sent one-half as frequent— 
that is, with a greater headway between them—it would make it 
possible to operate at a greater speed than would be safe with an 
increase on a short headway. 

Mr. Murdock. You are speaking on the basis that carriers at all 
times carry a full carload. Now, as a matter of fact, in the actual 
transmission of mail by pneumatic tubes, as I have gathered here, 
very frequently a carrier is not loaded to its capacity. 

Mr. Collins. The actual capacity of a 24-inch carrier is about 9^ 
feet, and I used 8 feet because I believe there is no reason why the 8 
feet should not be used. 

Mr. Murdock. Is not this true about the larger carrier: That 
where the unit of transmission of mail in this country is a sack or 
pounch, there is not a greater economy in the transmission of mail 
in larger lots from place to place through a tube by reason of the 
fact that you do not break bulk as often and the separations are not 
as minute or frequent? In other words, on the score of the hand¬ 
ling of mail, is not a larger tube more economical to the Govern¬ 
ment than a small one? 

Mr. Collins. It seems to me that every time the bulk of a sack is 
broken it must increase the cost of handling the mail. At the same 
time, it would seem to me that a sack weighing about a hundred 
pounds is about a reasonable unit to be handled. In other words, 
I do not think it would be advisable to go much over that in the size 
of the unit. 

Mr. Murdock. I do not know what the weight of an ordinary 
first-class letter pouch is. 

The Chairman. Do you know, Mr. Masten ? 

Mr. Masten. The average throughout the country of paper sacks 
is less than fifty pounds; the maximum being 150 pounds. 

Mr. Stewart. That is a paper sack. Is it the same thing for the 
first class ? • 

Mr. Masten. Yes; it is the same thing for the first class. 

Mr. Collins. It is usually considered nearly a hundred pounds. 

Mr. Stewart. Not in the actual service. 

Mr. Murdock. Would an 18 -inch tube carry a mail sack contain¬ 
ing 50 pounds of mail ? 

Mr. Collins. The 18-inch tube carries a No. 2 sack, I believe. 

Mr. Murdock. Will a No. 2 sack contain 50 pounds of mail? 

Mr. Masten. Yes; it would contain a hundred pounds of heavy 
mail; magazine mail. 

Mr. Murdock. So the answer to my question is that an 18-inch 
tube will carry a pouch of mail containing 50 pounds of mail ? 

Mr. Collins. You have the answer. 

The Chairman. Mr. Collins, I should like to have you tell the 
members of the commission all you know about this system. 

Mr. Collins. It seems to me that another great advantage in the 
handling of mail would be the ability of the pipes. For instance, 


PNEUMATIC-TUBE SYSTEM. 


85 


suppose you are operating a double-tube line between the main sta¬ 
tion in New York and the Grand Central Depot, or any receiving 
and distributing point. These tubes can be operated in either direc¬ 
tion with a very slight regulation by the operator, and the fact that 
a great bulk of the outgoing mail is received at the down town sta¬ 
tion within a comparatively few hours in the day means overwork 
on the carrying capacity, whatever it may be, on the lines of transpor¬ 
tation during those few hours. Those tubes could be turned into 
the service for an hour, or whatever time might be needed, or, if an 
extra-heavy mail came in on the train, they could be both operated 
down to the main station. It seems to me that that would be an¬ 
other very great advantage, and that is absolutely practicable and 
very simple. 

The Chairman. Where are your tubes in operation? 

Mr. Collins. We have only one tube; the one between the House 
Office Building and the Capitol. 

The Chairman. Suppose you were favored by the Government in 
any way, could you get a franchise from the authorities, say in New 
York City? 

Mr. Collins. We have not advocated doing it in that way. We 
advocated the Government buying the system. The Government 
can buy the system and operate it. 

The Chairman. Would you want to sell only the machinery to the 
Government ? 

Mr. Collins. Sell the lines installed and ready for operation. 

The Chairman. In other words, you are manufacturers only ? 

Mr. Collins. Everything; manufacturers, contractors, and there is 
the tube ready for use. We have not considered a rental proposi¬ 
tion because the Government can more easily get a franchise than 
a private individual, and the Government can operate it as cheaply 
as anybody else can. 

The Chairman. How long have you been manufacturing your 
system ? 

Mr. Collins. The system here has been in operation, I believe, 
for over a year. During that time efforts have been made to extend 
the system, but it has not been extended so far. 

Mr. Murdock. Is it your proposition to sell the Government the 
patents ? 

Mr. Collins. No, sir. 

Mr. Murdock. Is it your proposition to construct lines for the 
Government? 

Mr. Collins. Yes, sir; at a stated contract price. 

Mr. Murdock. It is quite different from the proposition which 
we have had up before in these hearings, namely, the selling of al¬ 
ready constructed plants to the Government. 

Mr. Collins. Oh, yes; this is a new installation. 

Mr. Murdock. You have no plants to sell? 

Mr. Collins. No, sir. 

The Chairman. What are the advantages you can offer the Gov¬ 
ernment over what they have in use? 

Mr. Collins. The large tubes present "the advantages which I 
have named; the capacity of handling the usual units of mail with¬ 
out breaking bulk, and there is also an economy in operation; the 


8G 


PNEUMATIC-TUBE SYSTEM. 


power consumed is less than with the compressed-air system, and 
there is a marked advantage in the ability to operate the tubes both 
ways. 

Mr. Murdock. What do you mean by operating the tubes both 
ways? 

Mr. Collins. In a double-tube line one tube would naturally be 
used going north and another one for the mail going south, and by 
operating them both ways it means such an adjustment of the ter¬ 
minals that they can both be operated north or south. That adjust¬ 
ment can be made by throwing a lever in half a minute, and the tube 
is then operated in the opposite direction. 

Mr. Stewart. Do you operate them in both directions with the 
same set of machinery by the use of levers to change the connec¬ 
tion, or would you have to have two sets of receiving and dispatch¬ 
ing machinery? 

Mr. Collins. We would advocate that any way for emergency. 
Either tube could be used as a single unit operating in both di¬ 
rections. 

Mr. Stewart. Have you a tube constructed in that way now ? 

Mr. Collins. Yes, sir; this tube here can be operated in either 
direction. 

Mr. Stewart. What is your idea about operating a larger tube 
than an 18-inch tube with this system that you have? Would it 
be practicable ? 

Mr. Collins. Absolutely so; yes. I think, of course, the only 
question regarding the reasonable enlargement of the size is the 
practicability of getting the tube through the street. I am speak¬ 
ing now of New York and congested parts of New York, where, 
I believe, a 24-inch tube is about the limit that can be put through 
the street. 

Mr. Stew'art. Has this pipe been operated experimentally here? 

Mr. Collins. Yes, sir. 

Mr. Stewart. How long at one time? 

Mr. Collins. I really could not tell you that. It has been oper¬ 
ated a great many times, and it has been put in operation at any 
time when any one has come there to see it operated. I think that 
is a pretty hard test on the system. 

Mr. Stewart. How much headway would you be able to allow,, 
or how much is required in the operation of your tube line? 

Mr. Collins. We would advocate about 20 seconds. It could be 
operated, perhaps, in 15 seconds, but I do not think there would 
be any need of it. We can safely say 20 seconds. 

Mr. Stewart. Now, in operating your carriers on a headway of 
20 seconds you would have to have some facility in your station to 
take care of them. What do they weigh? 

Mr, Collins. A 24-inch carrier would weigh about 450 or 500 
pounds. 

Mr. Stewart. Yen would have to have some means of getting rid 
of those carriers so as to make room for your arriving carriers. Have 
you anything of that kind in this plant? 

Mr. Collins. We have, to a very small extent. It is nothing but a 
heavy round pipe. These carriers roll. You can move them with 
very slight effort on their own wheels, and they can be transported 


PNEUMATIC-TUBE SYSTEM. 


87 


down these rollways so far as you want to. They will roll and can be 
gotten out of the road very easily. 

Mr. Stewart. If you were operating those carriers on a 20-second 
headway, of course the space required to care for your carriers would 
be considerable as compared to the 8-inch tubes, where the men take 
them out and dump the mail; so that would be an item of consider¬ 
able importance in considering the feasibility of a tube of that kind. 

Mr. Collins. Yes; except that the capacity of one carrier is much 
greater. One is 9 cubic feet and the other is a quarter of a cubic 
foot. That fewer number of units would have to be taken care of. 

Mr. Stewart. But thev would have to be taken care of during a 
period of time which would admit of the transmission of a large 
amount of mail. For instance, if you have a lot of bulk mail to go 
to a station, which would ordinarily be sent out by No. 1 wagons, 
and you attempted to put that through an 18-inch tube, you would 
have to have enough space in your receiving station to care for your 
carriers as the} 7 come in on a headway of 20 seconds. 

Mr. Collins. But, perhaps, you would find it was not necessary to 
send them on a headway of 20 seconds to more than equal the ca¬ 
pacity of the remainder. 

Mr. Stewart. You have not figured out the capacity, have you? 

Mr. Collins. I have not gone into it in just that way. I do not 
know what the average load of mail is. 

Mr. Masten. We carry 70 full sacks of mail in a two-horse wagon. 

Mr. Stewart. The company that offered the department a contract 
for a service at Cincinnati is proposing to operate their tubes by the 
vacuum system. Is that the same patent that you control? 

Mr. Collins. I do not know anything about that concern. 

Mr. Stewart. Then your patents are not exclusive patents, so far 
as the rights on the vacuum system are concerned? 

Mr. Collins. I do not suppose anyone could patent the vacuum 
system. It is the receiving and dispatching apparatus which is 
patentable and which we do patent, and, of course, there are many 
ways of doing that. 

Mr. Stewart. Have you figured on the cost of constructing and 
installing a system; that is. the cost per mile? 

Mr. Collins. In a general way. 

Mr. Stewart. Could you submit your figures to the commission? 

Mr. Collins. That, of course, would vary in different localities. 
For instance, the cost of street construction in New York City is 
very high as compared to what it would be in TV ashington. The 
cost of pipe and such things are practically parallel wherever they 
are found. I should say that in New York City the system would run 
around $225,000 per mile of double 24-inch tube. 

Mr. Stewart. Twenty-four-inch tube? 

Mr. Collins. Twentv-four inch tube; yes. We think the 24-inch 
tube is better, because it will take anything that the department has. 

Mi*. Stewart. Have you any figures as to the cost of operation? 

Mr. Collins, No; we have not. I think that before that could be 
determined the particular installation or plan that was talked about 
should be somewhat known. The general principles of power re¬ 
quired for propelling cars by a vacuum system is considerably less 
than by other systems—compressed air, for instance. Then, of course, 
the carriers are heavier to handle and they take a little more labor, 



88 


PNEUMATIC-TUBE SYSTEM. 


but as against that there is the lack of necessity for breaking bulk of 
these mail sacks. I think they would show a marked saving over the 
use of the smaller tubes. 

Mr. Stewart. What is your position with reference to the com¬ 
pany ? 

Mr. Collins. I am the chief engineer. 

Mr. Stewart. 1 wished to know whether you are a man of tech- . 
nical knowledge. 

Mr. Collins. Yes; I am an engineer by profession. 

Mr. Stewart. I heard it claimed that a tube of large dimensions, 
considerably larger, say, than your 18-inch tube, would not be prac¬ 
ticable if operated by the vacuum system. What do you think of 
that? 

Mr. Collins. Will you kindly repeat that question ? 

Mr. Stewart. I have heard it claimed that a tube of a larger 
dimension than your 18-inch tube for instance, say, a 24-inch tube 
or a 30-inch tube, would be found to be impracticable with the 
vacuum system. I understand you use the vacuum system. As a 
technical man, what do you think of that? 

Mr. Collins. I can see no reason why it should not. 

The Chairman. It has not been demonstrated yet, however. 

Mr. Collins. But there are no principles involved which would 
make it impracticable. The power by which the 18-inch carrier is 
propelled is simply the pressure of the air, stronger on one side than 
it is on the other. Now, the larger the carrier the more square inches 
it has. Therefore the more pressure would be exerted by the same 
amount of air in operating these carriers by the same amount of air; 
and in operating these carriers the air pressure is only about an 
eighth to a quarter of a pound; that is, the amount which the air 
pressure is reduced is only about an eighth to a quarter of a pound, 
so that there is an enormous range of possible increase between that 
and 14 or 15 pounds to the square inch. Of course, the curves must 
be so proportioned that you can go around them. 

Mr. Murdock. If the Government should purchase the tubes 
already in existence in these four or five large cities, is it mechanically 
possible to apply the vacuum process to these tubes in their operation ? 

Mr. Collins. I do not know that I would be qualified to speak of 
that. Of course, it would mean the entire terminal rearrangement. 
The type of carrier is not the same. One operates with a frictional 
contact and the other runs on wheels. 

Mr. Murdock. I asked that question for this reason: If the Gov¬ 
ernment should at the present time take over these existing systems 
and as the years roll by we should discover that the vacuum system 
was by far the more economical of the two, we might buy a system 
that was antiquated. We might find ourselves in the position of hav¬ 
ing bought a system that was antiquated. You believe that the 
vacuum system will supersede the old compressed-air system, do 
you not? 

Mr. Collins. I believe it is more economical. I believe it permits 
of the use of larger tubes, and I believe that the use of larger tubes 
is desirable for the reasons that I have already stated. 

Mr. Murdock. You stated a few minutes ago that in the use of a 

larger tube there would be the necessity of less frequent dispatch of 

carriers, did you not? 

/ • 


PNEUMATIC-TUBE SYSTEM. 


89 


Mr. Collins. Yes, sir. 

Mr. Murdock. Then it naturally follows from that that the larger 
the tube the less of the capacity of the tube is used in a given number 
of hours? 

Mr. Collins. I do not know. 

Mr. Murdock. In other words, we find here in this hearing that 
there are some tubes used to only 2 per cent of their capacity. Now, 
if we have an 8-inch tube, as we have running from Roxbury to 
Uphams Corners in the suburbs of Boston, and we should substitute 
for that tube an 18-inch tube, would that further diminish the use 
of the capacity of that tube? 

Mr. Collins. You would further diminish the use of the tube; you 
would not further diminish the capacity of the tube. 

Mr. Murdock. 1 mean 3-011 would further decrease the use of the 
tube as to its capacity. 

Mr. Collins. Certainly; your operations would be fewer and your 
power consumption thereby would be lessened, and you would have a 
great capacity for handling more mail through that section. 

Mr. Murdock. Doesn’t it follow from that that the larger the tube 
the less of its capaciy you use on an equal amount of mail? In other 
words, I can not get it through my head that where we maintain a 
tube at the rate of $17,000 a } f ear, which is an enormous expenditure 
per mile, that we should get only 2 per cent of the capacity of that 
tube out of it. 

Mr. Collins. Should that be measured by the capacity or the use 
of the tube ? Should it not be measured for the handling of that large 
mail over that distance, and how much it costs to handle it by wagons, 
and how much it costs to handle it by the mail tubes? 

Mr. Murdock. It is true that all those elements enter in. But, as 
a matter of fact, it does not seem defensible to me that only 2 per 
cent of its capacity should be used. 

Mr. Collins. It would depend on what your rental was and what 
your means of carrying the mails by other service happened to be. 
The measure of the worth of that tube is the cost of carrying that by 
other means, and not whether that tube is being worked or not. If 
you have only enough mail to keep that tube going 2 per cent of the 
time, you know what it costs to carry it a year and what it costs you 
to carry it by some other means. Which is the cheapest? 

Mr. Murdock. Undoubtedly the carrying by wagon service would 
be the cheaper, but here is a matter of expedition which the tube 
gives and which the wagon does not give. Now, say we construct one 
of your 18-inch tubes for a mile between a prominent post office and 
a prominent terminal; then, if the Government is to make a profit¬ 
able use of that tube, the nearer it can use that tube to capacity the 
better off the Government will be. Is not that true? 

Mr. Collins. Yes. 

The Chairman. It is greatly a question of locality, then, is it not? 

Mr. Murdock. Does not the whole thing then resolve itself into 
the question as to the bulk of mail that is offered? 

Mr. Collins. How do you pay for carrying the mails—by the 
hundred pounds or by the year? 

Mr. Murdock. On the wagon service we pay by contract. 

Mr. Collins. And the other way you pay by the year. How does 
that resolve itself in cost per hundred pounds as compared with the 


90 


PNEUMATIC-TUBE SYSTEM. 


wagon service—without considering this expedition and certainty 
and all that ? 

Mr. Murdock. As a matter of fact, the wagon service between 
station and post office is used almost to its capacity. The contrac¬ 
tor makes a contract with this Government to carry the mail to and 
from the station and post office. He equips himself with so many 
wagons and so many horses and those horses and wagons are passing 
continuously between the station and the post office. He is working 
to 100 per cent capacity. Now, we will say here is an 18-inch tube 
and it works only 2 per cent of its capacity. Even taking into con¬ 
sideration the matter’of expediency, I believe that it is a loss to the 
Government, or at least it seems a loss to the Government, to main¬ 
tain a tube when it does not use the tube continually. 

Mr. Collins. On a rental basis or a purchase basis? 

Mr. Murdock. On the rental proposition. 

Mr. Collins. That would be governed by locality very largely— 
locality and the need of special service in that locality and the bulk 
of mail handled. On a purchase proposition it only means a con¬ 
sideration of the amount of money invested. When you want it 
you want it very badly. 

Mr. Murdock. But a ton of mail sent from the Washington post 
office to the Union Station in the city of Washington could be sent 
quicker through a tube than by a wagon. 

Mr. Collins. Yes, sir. 

Mr. Murdock. Do you think that 2 tons could be sent quicker by 
tube than by wagon? 

Mr. Collins. I would want to do a little paper work first before 
answering that question. 

Mr. Murdock. I want to find out where you put a dividing line on 
an 18-inch tube. 

Mr. Collins. Certainly one unit of mail can be handled quicker 
and more economically by tube than it can by wagon. When you 
get beyond the carrying capacity of the tube you want another tube. 
You do not want to go back to your wagon. At least that is the way 
it seems to me. 

Mr. Murdock. That is a good tube answer. 

Mr. Collins. Of course, we are presupposing that you have enough 
mail to make it worth while to put in a tube at all. * Certainly, hav¬ 
ing a tube in, you can handle it cheaper by the tube than by the 
wagon. 

Mr. Murdock. There is a point where a bulk of mail passes 
through a tube. The last part of a certain cargo of mail is not 
expedited when you attempt to pass it through a tube. 

Mr. Collins. Then what becomes of the first part that has come 
through ? 

Mr. Murdock. It has been very rapidly expedited. 

Mr. Collins. What has become of it? 

Mr. Murdock. In the ordinary course of postal transition it has 
been moved out. 

Mr. Collins. Yes; and it is either being assorted by the men in 
the car or it is somewhere on its way. In the case of a wagon that 
is all dumped on those men at once. ’ That is a great consideration in 
favor of the tube. 


PNEUMATIC-TUBE SYSTEM. 91 

Mr. Murdock. I see it is an element, and I am glad von called my 
attention to it. 

The Chairman. They can go ahead and do some work on it. 

Mr. Collins. Certainly. It gives them something to work on 
without waiting for a whole wagonload of mail to be dumped on 
them. 

Mr. Stewart. I noticed in the report of the former commission a 
letter from your company, dated February 23, 1908, and signed by 
John Henry Hulbert, assistant secretary, in which it is stated that 
you could construct a double line of 18-inch tubes here in Washing¬ 
ton between points about 1.39 of a mile distance for $225,000, which 
would be about $160,000 a mile. Do you recall that? 

Mr. Collins. I am not familiar with that. 

Mr. Stewart. Of course, construction in Washington would be 
cheaper than in a city like Chicago or New York. 

Mr. Collins. And an 18-inch pipe would be cheaper to construct 
than a 24-inch pipe, but I think with the slight difference in cost the 
Government would better put in a size tube to carry anything they 
have. 

Mr. Stewart. Your proposition is to build the tubes and turn 
them over to the Government? 

Mr. Collins. Yes, sir. 

Mr. Stewart. You have nothing now to sell. 

Mr. Collins. No, sir; nothing. 

The Chairman. Are you engaged in any other manufacturing 
business in connection with vacuum lubes? 

Mr. Collins. No, sir; this is our line of work. 

The Chairman. You are waiting for orders, then? 

Mr. Collins. That is the point exactly, sir. We believe we can 
save the Government considerable monev. We can more efficientlv 
handle the mails. 

Mr. Stewart. Have you ever compared the cost of your system as 
to construction or operation with a system of tunnels in which cars 
would be propelled by electricity? 

Mr. Collins. I am not qualified to speak of the other man’s cost, 
nor have I had sufficient details as to his movements of operation and 
construction of his cars, etc.; how much of the full size of the tubs 
he would use; how much he would gain by it; whether he would have 
any greater gain in a 30-inch tube with that method of carrying over 
our method in a 24-inch tube. I do know this, that I have had a 
great deal of experience in putting structures in New York streets, 
and it is very difficult to get anything bigger than a 24-inch pipe in 
there. 

Mr. Stewart. I know it is very difficult to get an 8-inch pipe 
through places in New York. What I was trying to get at was 
whether you had ever made the comparison of cost of construction of 
your system with the system that has been spoken of from time to 
time of a tunnel in which there would be two tracks upon which a 
6-foot car would be run. 

Mr. Collins. What size tunnel ? 

Mr. Stewart. It would have to be 7 to 9 feet wide in order to 
have a double track. 

Mr. Collins. Do you mean in New York City? 


92 


PNEUMATIC-TUBE SYSTEM. 


Mr. Stewart. Anywhere. 

Mr. Collins. That, of course, differs very much as to where yon 
are going to put it. 

Mr. Stewart. New York City would not be a very good example, 
because the condition there is very unusual. 

Mr. Collins. It is almost prohibitive. I think that in almost any 
city where these larger amounts of mail are handled, as in parts of 
Chicago, it would be mighty difficult to get a 6-foot tunnel. In the 
outlying districts it would be feasible, but there you would not be 
carrying enough mail to make it worth while. 

Mr. Murdock. A rental of $17,000 a year per mile does not tempt 
you to take advantage of any of the Government contracts offered? 

Mr. Collins. No; I do not think it does. I do not mean by that 
that the cost is not enough for operating our system, but I do not see 
anything to be gained by either party in doing it. There is a working 
plant over there. That is an ocular demonstration of what can be 
done with the system of an 8-inch pipe. The Government knows 
what it can buy that system for, and knows what it will cost to 
operate it. There is very little uncertainty about it. Certainly a 
margin could be left for increasing in cost of operation. It would 
be a very small amount per year. 

Mr. Murdock. We have about 50 miles of tubes already con¬ 
structed in this country. It is owned by people other than the Gov¬ 
ernment. They built those tubes on the idea that they could make 
money out of them at a rental of something like $10,000 a year. 
Now they say that a rental of $17,000 a year pays them about 6 per 
cent on their investment, but that the investment is not considered a 
good one by the public because there is no hope that the $17,000 
annual rental will pay a fair interest in return and amortize the 
principal. Is the philosophy that they have recited the reason why 
people back of your company do not care to take any of these Govern¬ 
ment contracts? 

Mr. Collins. Absolutely not. We believe that the Government 
can finance the construction of a tube for which it eventually has to 
pay cheaper than we can. We believe it can get franchises through 
the streets cheaper than we can. It can operate the system cheaper 
than we can. It can operate it to suit itself. What the Government 
wants to be sure of is that it is getting a system that is reasonably 
fool proof and will do their work. There is no reason why we should 
remain in the proposition at all. We are perfectly willing to furnish 
men for any reasonable time to break in the department men and see 
that things are handled properly, but if we finance it we have got to 
amortize it in the period of the franchise, whatever that may be, or 
of the lease with the Government, but there is no insurance about 
that being renewed. 

The Chairman. You are only in the manufacturing business? 

Mr. Collins. We have a tube which we believe the Government 
needs, and we believe that the cheapest way for the Government to 
get it is to buy it. 

Mr. Murdock. And you are not in the field to rent it to the Gov¬ 
ernment? 

Mr. Collins. No, sir. 


PNEUMATIC-TUBE SYSTEM. 


93 


The Chairman. You are manufacturers, and that is where you 
stop ? 

Mr. Collins. Yes, sir. 

Mr. Blackmon. Have any of the members of this commission ever 
seen the tube in operation between the Capitol and the House Office 
Building*? 

Mr. Stewart. I have seen it, but not while it was in operation. 

Mr. Collins. It is there, and Mr. Burton can operate it for you. 

Mr. Blackmon. I should at some time or other like to see it op¬ 
erated. 

The Chairman. I suggest that we go over there at the first con¬ 
venient time and see it in operation. 

Mr. Collins. It is all ready; it is in condition now to turn on the 

_ # «/ r 

machinery and operate it. 

Mr.* Burton will show it to you at any time. It speaks for itself 
stronger than anyone else. It is simple and practicable and fool¬ 
proof, and certainly has carrying capacity. 

The Chairman. If it proves a success, the next question is, Is it as 
cheap to operate as the system now being used? 

Mr. Collins, Do you mean from a power point of view? 

The Chairman. From the standpoint of saving to the Government 
in dollars and cents. 

Mr. Collins. I think that it would be found that the Government 
■could operate the 24-inch tubes for no more money than they are 
paying for the rental of the 8-inch tube. 

The Chairman. Then you are not prepared to say that it is any 
cheaper, except that they can carry more bulky mail ? 

Mr. Collins. I sav it would cost at least no more. I think it is 
likely that there would be some saving. Certainly the cost of opera¬ 
tion of this 8-inch tube looks like a big sum of money, but when you 
consider that they have developed this system and that it will prob¬ 
ably be taken away from them at the expiration of their lease, I do 
not think the rental price is so unreasonable as it seems. 

The Chairman. There is no connection whatever between your 
company and the other companies? 

Mr. Collins. None whatever. I suppose, of course, the commis¬ 
sion in considering future extensions has in mind the necessity of this 
parcel-post increase. That is going to increase in bulk, I suppose, 
very much the work of the department, and a large tube that is able 
to take care of that work would certainly be almost a necessity. 

The Chairman. That is a factor to be considered. 

Mr. Collins. It is a very important one, I should think. 

The Chairman. Yours is a New York concern, is it not? 

Mr. Collins. Yes, sir. 

The Chairman. Is it a corporation ? 

Mr. Collins. Yes, sir. We would like very much for the commis¬ 
sion to see the plant in operation. 

The Chairman. I think your wish will be gratified. There will 
be no trouble about that. Are there any other gentlemen present 
with you who would like to be heard? 

Mr. Collins. I think not. 

The Chairman. We are very much obliged to you for vour infor¬ 
mation. 


94 


PNEUMATIC-TUBE SYSTEM. 


FURTHER STATEMENT OF MR. R. G. COLLINS, OF NEW YORK CITY, 
REPRESENTING THE UNITED STATES PNEUMATIC CO. 

Mr. Collins. I think the first consideration in a tube system should 
be the reliability, and I just want to remark on the general principles 
of it. 

It is a carrier on wheels, which are roller bearing, moving-with very 
little friction. . is not a tight fit in the tube. From terminal to 
terminal there is practically nothing to stick on, and no lubrication 
is required. The carrier is large enough to be securely locked, and 
even with registered mail it could be locked with any secure lock that 
might be put on it. As to its being reliable, it is made available for 
any deliveries they may care to send through it. 

Another point in it is its ability to carry anything, any size which 
the department may be called upon to handle, even including the 
parcel-post regulations. I find on an examination of the report of 
the committee of 1909 that practically no second, third, or fourth 
class matter is handled in the tubes. It is almost entirely devoted to 
the first-class matter. It seems to me that if any economy is made by 
handling first-class matter in a tube, it is even more important to have 
that cheap form of transportation for matter which has to be handled 
at a lower rate. 

I made up a statement of the cost of operating this system per ton 
per mile. The cost of operation on a 20-second headway—you saw 
the other day a 15-second headway—including operators, power, 
repairs, and general expenses, for the two tubes is about cents per 
ton-mile. I do not know whether you gentlemen have any idea of 
what the cost of operation by the other tubes is or not, or how that 
compares with it. 

The Chairman. We have not seen the figures yet. 

Mr. Collins. I made up statements, basing them on that same 
committee’s report, which show the cost of transportation to be 
$1.04 per ton-mile. 

Mr. Blackmon. $1.04 by what system? 

Mr. Collins. By the 8-inch tubes. The cost of transportation by 
screen wagon, based on the contract price in New York, which I be¬ 
lieve is 384 cents per ton-mile, is about 35.4 cents per ton-mile, show¬ 
ing that the cost of transportation in the 24-inch tubes is considerably 
lower than even the screen-wagon transportation. 

Another thing about that is that, of course, the greatest economy in 
the transportation of the matter is in handling it to its fullest capac¬ 
ity, in getting matter off to a train, or something of that kind. On 
the other hand, the amount of power required to propel the carrier 
in a vacuum system is so much less than that required in a com¬ 
pressed air system that you can handle a single letter in one of those 
big carriers for as little as you can in an 8-inch tube, so that it would 
seem that it fitted almost every needed department, even in economy. 
In that report to which I refer there were one or two evidences of in¬ 
adequacy of the present tubes recited, one of which was the handling 
of a certain amount of mail from the post office in New York to the 
three trains which left the Grand Central Depot between 9.30 and 11. 
It is recited there that 206,000 pieces of mail were sent to these trains 
by wagons, and 5,500 pieces by the tubes. Those 206,000 pieces mean 
about 10 minutes’ work for these tubes. That is merely an illustra- 


PNEUMATIC-TUBE SYSTEM. 


95 


tion of the availability of it, where the present 8-inch system is in¬ 
adequate. The tubes, when they are working to their full capacity, 
can handle, of course, the volume of first-class mail, as great as it is, 
in considerably less time than the 8-inch tubes, and there would be 
that much more time, of course, available for handling second, third, 
and fourth class matter at about the same price per ton-mile. 

The statement was made the other day in the hearing, after we 
had left, that it was impracticable to reverse the direction of opera¬ 
tion in these tubes; that it is all right from an inventor’s standpoint, 
but it could not be done practically on account of getting all your 
means of conveyance, your carriers at one end. That is a good argu¬ 
ment, perhaps, in the case of 8-inch tubes. Take the 210,000 pieces, 
for instance, to three trains, and we will assume that 70,000 pieces go 
to a train. It would take about 160 carriers of the small class to 
handle that. Of course, you could hardly accumulate that many at 
one end, but in the case of the large carriers, 10 carriers carrying the 
whole shipment for one train, it is perfectly possible to accumulate 
that many extra carriers, if necessary, in preparation for that ship¬ 
ment at that time of the night, in addition to which it happens in 
the case recited just about the time these carriers are getting up with 
the heavy shipment in one direction there is a heavy mail train com¬ 
ing in, and they would undoubtedly have the same hunch of carriers 
to take the heavy shipment down to the post office. 

Those figures I have written out and would be glad to submit for 
your consideration. 

The Chairman. Give them to the stenographer. 

Mr. Blackmon. Speaking about the service being carried on in the 
same direction, you mean where you have two lines of tube, do you 
not? 

Mr. Collins. Yes. 

Mr. Blackmon. The one we looked at the other day over here is 
only a single line ? 

Mr. Collins. That is all, only a single line. 

Mr. Blackmon. Your idea is that if that line is paralleled by an¬ 
other tube, you could send mail in the same direction in both tubes ? 

Mr. Collins. Yes; at such a rush period as recited, for instance, 
in that report, where three trains are leaving in a comparatively 
limited space of time. Every time those carriers came back you saw 
that direction of the operation reversed, and it evidently is not a 
very difficult matter, nor does it take a very long time to do it; and, 
of course, if that lot of mail were to be shipped in one direction, and 
if the time were short, both tubes could be operated in that direction; 
and undoubtedly, as the requirements of the system increase, they at 
many times would be. 

I heard in the discussion the other day about the parallel systems 
and the radiating systems of handling the mail with these tubes. It 
seems to me that another great advantage of having a reversible tube 
would be to take care of the situation which is to be found probably 
to a greater degree in New York than in any other city that I know 
of, where there is a long line with a lot of stations on the line; the 
initial section is overworked, and the matter to the far stations has 
to be rehandled at each one of the intermediate stations, put on into 
the next section. If a double tube were installed, there would be no 


96 


PNEUMATIC-TUBE SYSTEM. 


reason why one of those tubes could not have a terminal, say every 
third or fourth station, the other tube having a terminal at each 

station. „ 

In that way economy in handling the matter to the lar-ott point 

would be increased as well as the time occupied in the trip very much 
cut down, and at the same time the intermediate stations would have 
all the advantage of communication with each other. 

The Chairman. There are a great many technical questions in¬ 
volved, and I believe the commission will at some time employ a com¬ 
petent engineer to make a separate report. 

Mr. Collins. As to the particular matter of the principles involved 
in this system ? 

The Chairman. Of all systems. 

Mr. Collins. I mean, of all systems. 

The Chairman. Yes. 

Mr. Collins. I think that we would all welcome that. 

The, Chairman. I think the commission should see their way clear 
to appoint some competent man to make an independent investiga¬ 
tion in that direction. 

Mr. Collins. I am sure Ave would all welcome an iiwestigation of 
that kind. 

The Chairman. Is there anything more? 

Mr. Collins. No; that is all. 

The Chairman. We are much obliged to you. 

Mr. Collins. I thank you, Mr. Chairman. 


United States Pneumatic Co., 

Pneumatic Dispatch Tubes. 

New York, N. Y., December 10. 1912. 

Hon. Simon Guggenheim, 

Chairman Committee on Mail Tube Extension, 

United States Senate, Washington, D. C. 

Sir: In considering the question of extending the system of pneumatic tubes 
for the transportation of mail and parcel post matter we desire to direct the 
attention of your committee to the system of large tubes furnished by this 
company. 

The advantages of tube over vehicle transportation for mail service has, we 
believe, been thoroughly demonstrated, the main points of superiority being— 

Expeditious and reliable delivery of the mail regardless of conditions of 
weather or street traffic. 

A continuous delivery of mail to the clerks at the terminal point, permitting 
continuous work by them instead of the lost time waiting for the arrival of the 
wagons and the necessary extra effort to handle the large amount then received. 
By this continuous delivery a smaller number of clerks is required to handle a 
given quantity of mail. 

A decided saving in cost of transportation. 

A greater security while in transit. 

We believe, however, that the greatest possible degree of efficiency and 
economy is not obtainable in using tubes of the size now in general use, i. e., 
8-inch diameter. 

The tube system best suited to the requirements of the service should be— 

Simple and substantial in construction that it may he absolutely relied on at 
all times. 

Easily operated and not requiring particularly skilled men for its operation. 

The system should be so designed that a carrier large enough to contain any 
sack or package that the department may be called upon to handle can be 
transported in a tube of minimum outside diameter, which must be considered 
on account of the expense and difficulty attached to constructing the tubes in 
streets crowded with subsurface structures found in most of the streets and 
localities where the tubes are most needed. 


PNEUMATIC-TUBE SYSTEM. 


97 


1 lie system should be so designed that the tubes may be quickly adjusted for 
operation in either direction to afford the additional carrying capacity required 
in the rush periods, met with in the daily work of the department. 

The system should be economical in power requirements. 

The requirements of the Parcel Post Service should be particularly considered 
in determining the size and efficiency of the carrier. 

Advocates of the 8-inch tubes have stated that the practical limit of tubes 
operated by compressed air is reached in that size, and this statement is 
undoubtedly true. 

However, it has been practically demonstrated that larger tubes can be oper¬ 
ated satisfactorily and most economically by exhausting the air (usually spoken 
of as the Vacuum system). An inspection of such a tube in operation between 
the Capitol and the House Office Building will show an 18-inch tube with simply 
constructed and operated terminals operating in a thoroughly satisfactory 
manner. 

We believe that the requirements of the postal service as to capacity of car¬ 
rier will be fully met by using 24-inch tubes in wffiich the carrier is propelled 
as in the 18-inch tube just mentioned. 

The construction of the tubes and terminals is simple, strong, easily oper¬ 
ated, not easily put out of order, and subject to a minimum of wear. 

In 20 seconds the direction of travel in either tube can be reversed, permit¬ 
ting the sending of carriers in either direction, as required. 

The tubes, being operated by exhausting the air ahead of the carrier, are 
admittedly the most economical in power consumption. 

We believe that the Government can operate a tube system of its own for 
much less than it can be operated by a private corporation, for several reasons, 
among which are: 

The cost to the Government, of the money invested, is much less. 

The Government can easily secure a franchise for an indefinite length of 
time, whereas the corporation has no assurance of a renewal of its lease, and 
must therefore amortize the whole investment in the term of the lease. 

These, with the administrative expenses, legal expenses, etc., are the heaviest 
items in the expense of conducting the business by a corporation, and are not 
necessary to the conduct of the business by the Government. 

We therefore propose to construct these tubes for the Government for a 
stated sum, the operation to be conducted by the Government. 

In view of the additional matter which must be transported in the parcel- 
post system, as well as the economies in mail transportation above mentioned, 
we believe that the interest of the postal service would be most advanced at 
this time by beginning at once the construction of a system of large pneumatic 
tubes, to be owned and operated by the Government. 

As a beginning, the mail centers in the large cities at which the most mail 
and parcel matter is handled should be connected by tubes, as. for instance: 

The Hudson Terminal Station, in New York City, to the Pennsylvania Rail¬ 
road station at Thirty-second Street (with a steamship delivery point at 
Twenty-third Street and Twelfth Avenue, or that vicinity) ; from the Pennsyl¬ 
vania Railroad Station to the Grand Central Station; from there to One hun¬ 
dred and twenty-fifth Street and Third Avenue; from there to the proper cen¬ 
tral point in The Bronx. 

From these last points mentioned, radiating systems could be added as may 
be considered advisable. 

A connection should be made to Brooklyn centers from lower Manhattan. 

The difficulty of installing structures in the streets of the large cities is in¬ 
creasing yearly, with the attendant increase in expense of construction. This 
is particularly true in the localities where postal tubes as a means of trans¬ 
portation are most needed. 

The necessity for such tubes is generally recognized, and a great deal of ex¬ 
pense for construction will be saved by starting such a system at once, as well 
as securing the obvious economy in transportation of postal matter at an early 
date. 

It has been suggested that a new down-town post office should be built in 
New York City. This would take at least five years, and there is no necessity 
for delaying tube construction for that length of time. 

The line between the Hudson Terminal Station and the Pennsylvania station 
could be so laid out that connecting up the new down-town station when con- 


78419—13-7 


98 


PNEUMATIC-TUBE SYSTEM. 


structed would be a matter of relatively small expense as compared with the 
gain from pneumatic-tube sen-ice during the intervening years. 

We urge that some such plan as this be begun at an early date. 

We attach a statement showing some points of comparison between the tw r o 
systems and invite your attention particularly to the cost of transportation by 
each system. 

Respectfully, United States Pneumatic Co., 

By R. G. Collins, Jr., 

Chief Engineer. 


Claims Made for System of 24-inch Tubes Operated by the Vacuum System, 

as Compared with 8-incit Tubes Operated by Compressed Air and Tubes 

in Which Electric Cars Are Operated. 

As compared with S-inch tubes, the 24-inch tubes are more reliable, for the 
reason that the carrier runs on roller-bearing wheels and can not become hung 
up between terminals. 

In the 8-inch tube the carrier, fitted with packing rings and sliding in a 
greased tube, frequently gets stuck, causing a delay and frequent damage to 
mail matter. 

In the 24-inch system the terminals are strongly constructed, simple, and 
easily operated, no parts subject to undue strains or liable to much wear; they 
can not be easily damaged by careless operation. 

Practically no air pressure is used in the tube. 

The carriers are strongly constructed, with nothing to wear or break. 

No lubricant being used, there is no danger of damage to postal matter from 
oil or grease, and the destination point can be clearly made out as the carrier 
progresses. 

The carriers are large enough to be fitted with a dependable lock for registered 
or other mail matter when desired. 

Carrier capacity for containing mail in sacks, causing an economy in labor 
from not having to remove the mail matter from sacks in preparation for transit 
and resorting and resacking the mail at the tube terminal. 

Carrier capacity for containing any piece of parcels post or other matter the 
postal service may be called upon to handle. Neither of these features are 
possessed by the 8-inch tubes. 

Although one letter can be transported as cheaply by the 24-inch system as 
by the smaller tubes, the capacity of the system is so great (600 to 800 tons per 
24 hours) that all classes of postal matter can be handled with the dispatch, 
economy, and continuity of first-class matter. As the second, third, and fourth 
class matter is carried at cheaper rates of postage, this should materially help 
out in carrying it more profitably. Transporting all this postal matter can be 
done, and still, such is the carrying capacity of the 24-inch tubes, the power can 
be shut off during a considerable portion of the 24 hours, when not needed, and 
the carriers can be run at a slower speed than 30 miles per hour; by so doing 
the power bill for the year will be materially lowered. 

The direction of travel in either tube can be quickly and easily reversed, mak¬ 
ing the full capacity of both tubes available in one direction when desired. In 
such a location of postal substations as exists on Manhattan Island and on up 
into The Bronx this possibility of reversing would permit using one tube of a 
pair as an express tube, i. e., having stations only at every three or four postal 
substations. This would permit much greater dispatch in forwarding mail to 
the distant stations, as well as an economy in not being obliged to forward 
carriers at each station along the line. The intermediate stations could be 
connected by the other tube, reversing the use of the tube as desired. 

The 24-inch tubes are more economical to operate both for power and repairs, 
particularly carrier repairs. This statement applies to the transportation of 
one letter or the maximum capacity of the system. Of course, the more nearly 
the maximum capacity of the system is approached the lower the cost per ton 
per mile. 

Twenty-four inch tubes as compared with electric carriers in tubes; In using 
these electric carriers it is necessary to use a 30 or 36 inch tube to contain a 



PNEUMATIC-TUBE SYSTEM. 


99 


carrier holding the volume of mail that is carried in the carrier of a 24-inch 
tube. In addition to this, the motor and other necessary apparatus, together 
with the mail holder itself, takes up so much length that a 50-foot radius is 
necessary on curves. 

We do not say that it is impossible to install 30 or 36 inch pipes, with 50- 
foot curves, in the streets of our large cities, but we do say that it will be found 
impracticable to do so in a majority of the streets, on account of the expense 
involved in moving other subsurface structures to make room for them; neither 
is it always possible to get the owner of the structures to consent to its removal. 
The cost of installing the larger pipes will probably be 200 to 300 per cent that 
of a 24-inch pipe. 

In addition to this difficulty is the great risk attached to operating electric 
apparatus in a necessarily damp, dirty, ungetatable underground tube. 

This system must necessarily be equipped with delicate and complicated 
controlling devices, and it seems hardly possible that any one familiar with the 
eccentricities of electric devices when exposed to moisture and dirt would be 
willing to take the risk of depending on such a system for the underground 
transportation of the mail of a large and busy city. The condensation alone 
would be of serious danger to the apparatus. 

Instead of the unit power plants used in a tube system, located where they 
can be watched and taken care of momentarily as may be necessary, in the 
proposed electric system a number of power plants operating at high speed are 
running in an underground tube, trusting for control to automatic devices. 

If anything goes wrong with one of them, the power must be shut off to 
permit a man to go into it. This means, of course, that the whole system is tied 
up. Imagine the consequences of a broken water main, which is a frequent 
occurrence in our cities, or a backed-up sewer, caused by heavy rain or an 
exceptionally high tide. 

Where are the compensating advantages for taking a risk like this with the 
United States mail? 

COMPARING THE 24-INCH TUBES WITH SCREEN WAGONS. 

The tube service is more reliable; less interfered with by traffic or weather 
conditions; more expeditious in transit; continuous in delivery at the destina¬ 
tion, permitting an economy in labor for sorting, etc. 

A further economy is gained by doing away with much of the labor of loading 
sacks into and out of wagons. 

The postal matter is never out of the hands of postal employees in a Gov¬ 
ernment-operated tube. 

The cost of transportation in the 24-inch tube is much less per ton per mile 
than in a wagon. 

DATA ON COST OF WAGON TRANSPORTATION. 

The contract rate for wagon delivery in New York City is 38.21 cents per 
load per mile. 

On page 26 of the report of the 1909 commission, an average wagonload is 
named as about 2,160 pounds. 

This would make the cost per ton per mile 35.4 cents. The cost by 8-inch tubes 
per ton per mile is 1.11 cents; the cost by 24-inch tubes per ton per mile is 
6.32 cents. 

The data on which these statements are based follows: 

DATA ON 8-INCH TUBE OPERATION. 

All page references are made to 1909 report. 

A cubic foot of first-class mail contains 50 pieces. (See p. 26.) 

A cubic foot of first-class mail weighs 36 pounds. (See p. 26.) 

Average weight of first-class mail sack is 50 pounds. (J. M. Hasten.) 

It costs one-half cent to send an 8-inch carrier 1 mile. (See p. 44.) 

This carrier contains 0.25 cubic foot, 9 pounds, 450 pieces. (See p. 26.) 

Practical maximum capacity of one 8-inch tube is 240 carriers per hour, 
carrying 2,160 pounds or 108,000 pieces. (See p. 26.) 

Therefore 240 (carriers) multiplied by one-half cent equals $1.20. and repre¬ 
sents the cost of transporting 2,160 pounds 1 mile. 


100 


PNEUMATIC-TUBE SYSTEM. 


Cost pet' ton-mile, $1.11. 

Analyzing the 1909 committee’s estimate of the cost of operating two 8-inch 
tubes in New l r ork City, omitting the cost of power. (See p. 55.) 


Operators, per mile, double tube per year_*_$3, 003. 00 

Carrier repairs and replacements, per mile, double tube per year- 2, 010. 00 

Repairs to line and machinery, per mile, double tube per year_ 1, 770. 00 

General expense, per mile, double tube per year_ 1, 301. 00 

Cost of labor, etc., for one year (6,730 hours)_ 8,084. 00 

Two tubes per hour_ 1. 20 

One tube per hour_ . 60 


Total cost of operation of one 8-inch tube for one hour as above- 1. 20 

Minus cost of labor, etc., as above- . 60 


Cost of power one hour equal to 20 kilowatts, at 3 cents_ . 60 


DATA ON 24-INCH TUBE OPERATION. 

Capacity of one 24-inch tube: 

Carrier 23 inches muliplied by 40 inches containing 9£ cubic feet. 

Loaded to two-thirds capacity contains 6 cubic feet, 216 pounds, 10,800 pieces. 
With 20 seconds headway and carriers loaded as above, one 24-inch tube will 
deliver 1,080 cubic feet, 38,880 pounds, 19.44 tons, 1,944,000 pieces. 

Estimated cost of operating two tubes per mile per year, tube service available 

2k hours daily. 


Operators_$3, 000 

Carrier repairs_ 150 

Repairs to line and machinery_ 500 

General supervision_ 500 


Cost of labor, etc.: 

2 tubes, one year (7,962 hours)_ 4,150 

2 tubes, one hour (cents)_ 50£ 

1 tube, one hour (cents)_ 25 £ 


Cost of power for one 24-inch tube one hour, 30 kw. at 3 cents, 90 cents. 
(Based on power actually used by 18-inch tube in Washington, D. C., which 
requires 16 kw.) 

Cost of labor, etc., as above, 25£ cents. 

Total cost of operating one tube 1 mile, one hour (24 in.), $1.15. 

Total cost of operating one tube 1 mile, one hour (8 in.), $1.20. 

It is evident, therefore, that it costs less to operate the 24-inch carrier through 
the tube than is required for the 8-inch. 

The power consumption in the 18-inch tube varies with the speed of the car¬ 
rier and increases about one-ninth kw. for each additional carrier used. Very 
little, if any, increase is shown, as load of carrier is increased, and it is evident 
therefore that there is no economy in the use of the 8-inch tube as compared 
with the 24-inch tube, whether used for a very light load or loaded to the prac¬ 
tical maximum. 

With the 24-inch tube delivering at the rate of 19.44 tons per hour, the cost 
would be: Labor, etc., $0.25£; power, $0.98; cost of transporting the 19.44 tons 
1 mile, $1.23&. Cost per ton per mile, 6.32 cents. 

All of the above is based on Government ownership and operation, and in¬ 
terest on investment has, therefore, not been taken into consideration. 


J. F. Bedford, 

Secretary Commission on Mail-Tube Extension. 

Dear Sir : I inclose a letter to Senator Guggenheim, chairman of the commit¬ 
tee, together with certain data on cost of operation, etc., of the 24-inch tubes. 

I should be glad at any time to give further information or explanation of 
the figures in the inclosed report if desired. 

Very truly, yours, R. G. Calliers, Jr., 

Chief Engineer United States Pneumatic Co. 


December 19 , 1912 . 
























PNEUMATIC-TUBE SYSTEM. 


101 


Theie can be little question as to the fact that carriers operating in large 
unde 1 ground tubes provide the best means of transporting mail matter between 
the large mail-handling centers in cities and their outlying districts. 

For this service three types of carriers and two methods of propelling the 
carriers in the tubes are offered. 

The types of carriers offered are: 

(1) One in which the carrier is mounted on two wheels (one ahead and one 
behind) running on a rail fastened to the bottom or floor of the tube, and 
maintained in an upright position by side wheels which run against side rails 
in the tube. 

(2) One in which the carrier is mounted on four wheels (two behind and 
two in front) running on rails fastened to the floor of the tube. 

(3) One in which the carrier is mounted on six wheels (three ahead and 
three behind) set radially in the head of the carrier and running directly on 
the floor or bottom of the tube, which is laid with great care at the joints. 
This type of carrier is referred to as the “ Burton carrier,” and is propelled 
in the tube by exhausting the air ahead of the carrier, usually spoken of as the 
vacuum system. 

Types Nos. 1 and 2 are propelled by electricity supplied by trolley wires or 
bars fastened to the top or roof of the tube. 

Type 1 requires a 30-inch tube to operate a carrier 25 inches in diameter. 

Type 2 requires a 36-inch tube to operate a carrier equal to approximately 
24 inches in diameter. 

Type 3 operates a 23-inch carrier in a 24-inch tube, a 28i-inch carrier in a 
30-inch tube, and a 34|-inch carrier in a 36-inch tube. The length of all the 
carriers is dependent on the radius of the curves. 

Any postal matter required to be transported by the parcel-post service can be 
transported in a carrier of a 24-inch tube. 

COMPARATIVE COST OF TUBE CONSTRUCTION. 

The cost of 24-inch pipe being 100 per cent: 

The cost of 30-inch pipe will be 145 per cent. 

The cost of 36-inch pipe will be 180 per cent. 

The larger the diameter of the pipe the more expensive to lay in city streets, 
on account of the expense of moving existing subsurface structures to make 
room for it. For this reason the cost of installing the pipes of different size 
in the business sections of cities would probably be: 

Considering 24-inch pipe to be 100 per cent: 

Cost of laying 30-inch pipe would be 200 per cent. 

Cost of laying 36-incli pipe would be 300 per cent. 

These figures would probably cover the cost of extra excavation and pave¬ 
ment replacement. 

Where electricity is used, the greatest care must be exercised to make the 
pipe air tight, and also to see that it is kept so. Gas from leaky gas mains is 
almost always present under the pavement, and it would naturally be drawn 
into the tube by the movement of the carriers, where it would at once be 
ignited from a sparking trolley or motor, causing a disastrous explosion. 

INTERIOR CONSTRUCTION. 

With types 1 and 2 it is necessary to install in the tubes three rails, trolley 
wires, and other electrical members, which latter must be carefully insulated 
from the iron tube. The rails must be carefully laid as to alignment, particu¬ 
larly on the many horizontal and vertical curves necessary in turning street 
corners and passing under and over other subsurface structures. 

The original installation of all these members in the tubes will undoubtedly 
add greatly to the first cost of the electrical system. 

INSPECTION AND MAINTENANCE. 

All these members in the tubes must be frequently inspected for loose fasten¬ 
ings of rails or wires and broken insulators caused by the vibration of the 
tube with a 1,000 to 1.500 pound car passing at high speed. The trolley wires 
must be kept from water. 

In one form of proposed electric propulsion the electrical “ gap ” must be 
maintained and the members not allowed to touch each other. This may be 
difficult at vertical curves and at switches. 


102 


PNEUMATIC-TUBE SYSTEM. 


The wheels on carriers of types 1 and 2 will wear on the curves, and must 
be frequently and carefully inspected to observe broken wheel flanges in order 
that no derailment may occur in the tubes. The derailment of a carrier 
at 30 or more miles per hour would cause damage which might take days to 
repair. When inspections of the tube are made the electrical current (440 
volts) must be shut off. 

With a carrier of type 3, there being nothing in the tube, the only parts to 
be inspected are the wheels of the carriers, and there being six of these, it is 
probable that at least two on one end would have to break to impede the 
progress of the carrier. 

There being no necessity for inspection, in these tubes, as well as the absence 
of all rails, wires, fastenings, etc., with their attendant, maintenance, and re¬ 
newal, the cost of maintenance and repairs should be considerably less in using 
the type 3 carrier. 

For the same reason the danger of interruption in the tube service caused 
by some member breaking or a car derailing is infinitely less in the case of 
type 3 carrier. 

COST OF CARRIERS. 

In a tube system of any length it is. of course, necessary to have a great 
many carriers. The carriers of type 1 and 2 weigh about 1,000 pounds, and 
will undoubtedly cost about $500 each. Twenty-four inch carriers of type 3 
weigh 350 pounds, and will cost about $125 each. Being more simple in con¬ 
struction, their maintenance will probably be very much less than types 1 and 2. 

TERMINAL MACHINERY. 

Without regard to method of propulsion, positive and dependable stopping 
devices must be provided. The more simple these are, the more easily will 
the postal employees master their operation, and the less danger exist of caus¬ 
ing damage which may put the tube out of service. 

In the methods using electricity as power these appliances are not as yet 
fully demonstrated, but in the contemplated appliances it would seem that 
much of the device would be delicate and in need of frequent adjustment. 

With the system using the type 3 carrier the means of stopping are fully 
demonstrated in the existing installation at Washington, and are seen to be 
positive, automatic in their operation, and as “ foolproof ” as machinery can 
well be made. 

In handling carriers at stations along the lines, with types 1 and 2 tracks and 
switches must be furnished on which carriers can stand while being loaded 
and unloaded. With type 3 the carrier can be quickly and easily rolled out of 
the main trough into parallel troughs in which they can be unloaded and loaded. 

OPERATION. 

Much is claimed for the electric system, in having the carriers automatically 
select and throw the switch at their destination, closing the switch after them 
and making a proper stop in the necessarily short switch or siding. 

If this is possible without too much complication, delicately adjusted devices, 
etc., it will be of some advantage in sending carriers to distant stations, but 
this can only be judged properly when actually seen in operation. 

It again seems to be of questionable value, when the method of accomplish¬ 
ing the same with the vacuum system is considered. In this the ends of the 
receiving and transmitting chambers are about 15 feet apart and connected 
by the half-round trough. 

The carrier comes out . of the receiving chamber into this trough, with its 
destination plainly “ chalked ” on the outside. If it is a through carrier, the 
attendant gives it a slight push, it enters the transmtting chamber and is off. 
No delay and no complicated and delicate devices to be dealt with. 

SPEED OF CARRIERS. 

In considering the speed at which carriers can be propelled through tubes, it 
must be remembered that the alignment of the tube is necessarily tortuous 
(on account of passing under and over other pipes, etc., and turning corners), 
and, therefore, the design of the carrier must be such as will permit the safe 
passage of these curve points at full speed. 


PNEUMATIC-TUBE SYSTEM. 


103 


On account of tlie impracticability of superelevating the rails on these curve 
points as would be necessary, and as is the practice on railroads, the speed of 
a carrier running on rails in any tube line must necessarily be limited to the 
sate speed at these curve points; even at moderate speed a heavy carrier 
on a rail without superelevation will cause a considerable thrust on the wheel 

flanges, and if the proper speed is exceeded, this thrust may become a danger¬ 
ous factor. b 

With a carrier of type 3, there being no rails or flanged wheels to consider, 
these curves will have no effect on the speed of the carrier, and it is guided on 
an,\ cun e, either vertical or horizontal, by the radial wheels in contact with 
the surface of the tube. 


POWER REQUIREMENTS. 

There being no such system in actual operation, this element of the cost of 
operation of the electrically propelled carriers can only be considered from the 
point of theory, at this time, there being several factors which can not be de¬ 
termined until they have been practically demonstrated, such as carrier re¬ 
sistance in a closed tube, and electrical losses of various kinds. 

It would appear, however, that comparing the theoretical power requirements 
of the electrical system with the actual power requirements of the vacuum in¬ 
stallation, the latter system is cheaper in cost of power, as well as in cost of 
installation and maintenance. 

TRANSPORTING MAIL MATTER BY MOTOR WAGON AND TROLLEY SERVICE. 

The rate of charge for motor-wagon service varies from 22 cents to 30 cents 
per load-mile. 

Where a full wagon load is handled, as from a main post office to a railroad 
station, the average load is about 1 ton. 

Applying the rate charged in New York City (30 cents) for this service, the 
cost per ton-mile is 30 cents. 

As usual, however, the truck starts with a load of perhaps 1 ton, leaves 
a portion of the load at one station and a portion at the next, etc., with the 
result that the average load hauled the last mile or two of the trip is hot over 
200 to 400 pounds. Therefore, the cost of this load may vary from 30 cents 
per ton-mile on first mile, to $3 per ton-mile on last mile. 

The conditions in the trolley service are very similar, the usual rate for 
city service being 20 cents per car-mile. 

As compared with each the above methods, the tube, handling the mail mat¬ 
ter in smaller units shows a great saving in cost, cuts down the time of delivery 
fully 75 per cent, and gives a more frequent delivery. 


Report on the Burton Vacuum System of Pneumatic Transportation. 

[As submitted to the commission appointed by the Postmaster General to investigate the 
proposition for the establishment of pneumatic-tube service between the Grand Central 
and Pennsylvania Terminals, in New York City, by United States Pneumatic Co., 
Times Building, New York.] 

LARGE DIAMETER TUBES FOR MAIL TRANSPORTATION. 

The economical, swift, and safe transportation of mail through tubes of large 
diameter is now proved to be feasible. Only small diameter tubes are used 
by the Post Office Department at present, and are all operated by compressed 
air. For years it was held that large diameter tubes were not practical for 
this purpose. As indicating this theory, a report upon pneumatic tubes by a 
commission appointed by the Postmaster General, published in 1900, says: 

“ The chief mechanical expert of the pneumatic-tube service holds the opinion, 
after many years of experience and study, that the economical efficiency of 
tube service is best represented by the 8-inch line, rather than by a tube of 
greater diameter.” 

Contrary to the above, it is now demonstrated that, by the use of the Burton 
method, there is greater efficiency with less energy expended in operating a tube 
of 18-inch diameter than one of 8-inch diameter. 



104 


PNEUMATIC-TUBE SYSTEM. 


The Burton system now in successful operation in Washington, D. C., uses 
tubes of large diameter operated by suction or vacuum instead of by com¬ 
pressed air. It is possible to transport mail in the regulation pouches, or 
otherwise, and through a perfectly dry tube. 

The economy of the system is due to using the assisting instead of the re¬ 
sisting qualities of air. Every open receptacle—so-called empty—is filled with 
air under a pressure of 14.7 pounds to the square inch, whether it is vertical, 
horizontal, or inverted. The resisting power of air must be reckoned with. 
The familiar experiment of pushing an inverted drinking glass into a basin of 
water shows that the power of air resists even the effort of water “ to seek 
its own level.” In a tube open at the ends the air will resist any energy 
that propels against it, and the best results are obtained by exhausting the air 
in advance of the propelled body. An electrically propelled car requires far 
more power in a tube than when running through the open air. 

When compressed air is used to drive a body through a tube, the action is 
resisted by the natural air pressure. The column of air in the tube, which 
has to be driven out when compressed air is used, expands against the interior 
surface of the tube, and is retarded by friction. 

When suction is used to exhaust air from the tube in front of a passing 
body, the natural air pressure rushes in behind the body and propels it forward 
without the use of other power. Suction draws away the column of air from 
the surface of the tube to the center, so that its passage is without friction. 
Therefore, the use of vacuum reduces largely the cost of operation below the 
cost of using compressed air. 

When vacuum exists, only the slightest energy is required to propel anything 
through it. Complete vacuum is not necessary, but only what is known as an 
“out-of-balance” vacuum. By decreasing the density of the air in one part of 
the tube, the normal air pressure becomes active to equalize the balance. This 
may be illustrated by the action of gravity. An easy running vehicle can be 
operated by gravity if there is only a slight incline downward. It is not neces¬ 
sary that the track should be perpendicular in line with the center of gravity 
to feel its power, any more than it is necessary that there should be a com¬ 
plete vacuum to draw the force exerted by natural air pressure. 

DESCRIPTION OF THE BURTON SYSTEM. 

Charles H. Burton, for many years connected with the installation of the 
small-diameter tubes, knew the needs of the Post Office Department and all the 
requirements of satisfactory pneumatic-tube service. He worked to develop 
a large-diameter system that could be operated at a minimum cost and that 
would be free from any moisture or liquid mixture in the tube. This he has 
successfully accomplished. 

His invention makes possible rapid locomotion by natural force through 
tubes of large diameter, and provides means for starting and stopping heavy 
projectiles passing with great velocity through the tubes. Normal atmospheric 
pressure is the force that is used as the means of propulsion. A very small 
suction pressure creates all the “ out-of-balance ” vacuum that is needed. 

The terminals and carriers are built of great strength. Each carrier for the 
tube in Washington weighs 360 pounds empty, and has inside capacity of 4 
cubic feet or from 100 to 150 pounds of contents when filled. It was a problem 
to arrange for safely receiving these heavy carriers, arriving at great speed at 
the end of the route, but the problem has been successfully solved. The 
terminal machinery provides air cushions which check the impact of the arriving 
carrier, reducing the momentum for safe delivery at the receiving table. The 
passing of one carrier automatically resets the air cushions for each following 
carrier. The terminal machiney is so simple that an expert mechanic is not 
required to attend it. Strangers who have seen the apparatus for the first time 
have operated it without difficulty. It is only necessary to push an electric 
switch, which starts the exhaust fan, and move a carrier to the mouth of the 
apparatus. If no one is at the other end, as has frequently been the case, the 
apparatus performs its own work and is ready for the following carrier with¬ 
out any attention at the farther end. 

No lubrication of the tube is necessary, as the carriers run on wheels with 
roller bearings and move at the slightest pressure. The tube is always dry, as 
any moisture is drawn out by suction and no water accumulates in' the tube, 
a condition that is unavoidable where compressed air is used instead of vacuum] 


PNEUMATIC-TUBE SYSTEM. 


105 


The Burton system is equally applicable to tubes of different diameters, 
either 18 inches, 24 inches, 36 inches, or larger. The tubes are the standard¬ 
ized pipe of the American Water Works Association, and under this system do 
not have to be bored. They are laid just as they are sent from the foundry 
after inspection. No tracks, grooves, or trolleys have to be provided in the 
tube. On this account, installation is much simpler and cheaper and the cost 
of maintenance is reduced. The expense of repairs inside of the tubes is not 
only saved, but the more serious consequence of delay on account of such repairs 
is avoided. 

It is possible by a relay system to extend the service for any number of 
miles. The speed, as stated in the engineers’ report, is without limit “ up to 
the safety of the machine.” As a matter of test, the carrier has been sent 
through the tube at the United States Capitol at the rate of 90 miles per hour. 
For practical purposes the average speed recommended is 30 miles per hour. 

It is perfectly feasible to install the Burton 24-inch tube between the Grand 
Central and the Pennsylvania terminals in New York City. 

It is proposed to install double-tube service, so that either tube could be used 
in both directions and the terminal machinery changed from a receiving to a 
dispatching function by the adjustment of a single lever. Both tubes could 
be used one way if the service was heavy in that direction, or constant service 
would still be possible in both directions in case, for any reason, one tube 
should be out of commission. It is estimated that this double-tube line would 
convey 36 tons of mail per hour in one direction, or 18 tons each way per hour. 
The time between the two stations should not be more than two and one-half 
minutes. If the mail is handled in pouches as units, the attendant who would 
ordinarily deposit the unit in a wagon for transportation would deposit it in 
a waiting carrier, which would be dispatched through the tube without using 
skilled labor. 

In conference with D. H. Burnham & Co. (architects) and the plans commit¬ 
tee of the new Washington post office a plan for the sliding accommodation of 
surplus carriers was prepared and blue prints of the same are attached hereto. 
Under this plan semicircular open troughs, curved the same as the tubes, 
extend from the mouth of the terminals and accommodate SO empty carriers 
ready for immediate dispatch. At one central point the open troughs run 
under a large flat table or platform, from which the pouches or mail sacks 
are put into or taken out of the carriers. From this table a conveyor takes 
the incoming mail to upper floors, and a chute brings to this table the out¬ 
going mail. The carriers move at the slightest pressure of the hand and are 
guided to and from the platform with ease. This plan could be changed to 
suit other locations and conditions. 

THE INSTALLATION IN WASHINGTON, D. C. 

The United States Pneumatic Co., knowing the demand in the Post Office 
Department for an apparatus of this sort, desired to have a full working 
system in operation for the purpose of convincing the officials of that depart¬ 
ment of its efficacy and value. The commission in control of the House Office 
Building authorized the installation now in operation between the Capitol and 
House Office Building. After the completion a commission of engineers was 
specially appointed to investigate, test, and report if the apparatus was satis¬ 
factory, and if it met the guaranty that was made in regard to it. This report 
was most favorable, and a copy of same is hereto attached. 

The apparatus was formally approved and adopted by the United States 
Government, and an estimate for its extension to all of the legislative buildings 
in the Capitol group was asked for and referred to the Senate Committee on 
Public Buildings and Grounds. This committee held a hearing on the subject 
shortly before the close of the last session of Congress, and the following 
members personally investigated and approved the operation of the Burton 
system: Senators Sutherland (chairman), Wetmore, Heyburn, Martine, and 
Watson. Ten days later Senator Heyburn, of the above committee, presented 
the following amendment to the sundry civil bill, which was unanimously 
passed by the Senate: 

“ Pneumatic-tube service: For a pneumatic-tube system to connect the Capi¬ 
tol, the Senate and House Office Buildings, the Congressional Library, the 


106 


PNEUMATIC-TUBE SYSTEM. 


Union Railroad Station, the new post-oliice building, and the Government 
Printing Office of a capacity sufficient to handle the documents, parcels, and 
mail sacks dispatched between these buildings, to be expended by the Superin¬ 
tendent of the Capitol Building and Grounds, under the joint supervision and 
joint direction of the Postmaster General and the Superintendent of the Capitol 
Building and Grounds, $250,000, or so much thereof as may be necessary.” 

Many officials of the Post Office Department have seen its operation and 
approved of it, and many engineers connected with the Government and other 
experts have all approved of this system. 

The apparatus has been operated more than 2,000 times since its installation 
and tested under every condition, including temperature once at 14 degrees 
below zero and at another time 102 degrees above. 

The interior frame of a carrier for the 24-inch tube of the Burton system 
has been tested at the Washington post office as to its capacity. It was found 
that every form of full mail sack or pouch used by the department could be 
contained in this carrier. 

The essentials for a satisfactory mail-tube service are as follows: 

1. Tubes .—That will always be dry; that will be of sufficient diameter for 
transporting the largest sized mail sack or pouches filled to their capacity; that 
will be free from any interior mechanism, trolleys, or attachments that might 
need repairing. 

2. Carriers .—That are build of hardened steel of the greatest possible 
strength; that will run with the slightest exertion; that will have all removable 
parts doubly fastened and locked in place; that can be quickly loaded and 
emptied. 

3. Terminals .—That are strong, simple, and automatic, so that even if not 
attended when in operation no damage can happen. 

The Burton vacuum system of pneumatic transportation covers all of these 
essentials, and it is hereby recommended, and this report is respectfully sub¬ 
mitted by the United States Pneumatic Co. 


Report of Commission of Engineers Appointed by United States Govern¬ 
ment on the Efficiency of the Burton System and the Guaranty Made 
by the Postal Service Extension Co. 


Office of Superintendent, 

United States Capitol Building and Grounds, 

Chief Electrical Engineer, 
Washington, D. C., September 1, 1911. 

Hon. Elliott Woods, 

Superintendent United States Capitol Building and Grounds, 

Washington, D. C. 

Sir: In accordance with your letter we, the undersigned, witnessed the 
demonstration of the Burton vacuum system for the transmission of mail, 
documents, or other matter between the two terminals, one in the basement 
United States Capitol and one in the basement House Office Building. 

There is no doubt of their ability to handle these carriers through the 18-inch 
tube between the two terminals mentioned. The electric equipment and blowers 
are in excess of what is necessary to handle the carriers. There seems to be 
no limit to the speed up to the safety of the machine at which the carrier can 
be handled. From the demonstration we feel satisfied that it will meet the 
guaranty made by them. 

Respectfully, 


C. P. Gliem, 

Chief Electrical Engineer. 
II. W. Taylor, 

Chief Engineer House of Representatives. 

A. E. Cook, 

Machinist. 


Thereupon, at 4 o'clock p. m., the commission adjourned to meet 
at the call of the chairman. 



PNEUMATIC-TUBE SYSTEM. 


107 


Washington, D. C., 
Tuesday , December 17, 1912. 

The commission met at 10.30 o’clock a. m. 

# Present: Senator Simon Guggenheim (chairman) and Representa¬ 
tive Blackmon; also, Mr. John M. Masten. 

STATEMENT OF MR. FRANK E. ANDERSON, OF NEW YORK, 
REPRESENTING THE UNITED STATES PNEUMATIC CO. 

Mr. Anderson. I do not want to take up the time of the commis¬ 
sion to make any remarks at all, but simply to say that you have 
seen our apparatus, and we think seeing is better than hearing, per¬ 
haps, especially when time is so short. But we have an expert engi¬ 
neer with us, and we would like to give you some figures as to the 
cost of operation compared with other systems which the Govern¬ 
ment has used. That is all I have to say. 

The Chairman. We are very glad to have information of that 
kind. I do not think it will be necessary to have the figures given to 
us now, orally, but they can be given to the stenographer, unless 
the engineer wishes to be heard. 

Mr. Anderson. I would be glad if you would hear what he has to 
say, and then the figures will be left with the commission. 

The Chairman. Very well. 

Mr. Blackmon. Mr. Chairman, in this connection I would like to 
have a list of the stockholders of the American Pneumatic Tube- 
Service Co., and a full statement. Mr. Hayden said he would be 
glad to give us any information he had, and I want to know the 
amount of stock held by each one of them, and the dividends they 
have paid during their organization. 

Mr. Clarence W. De Knight. I will make a memorandum of that. 
I am simply here as a spectator, but I will communicate that to Mr. 
Hayden. 

The Chairman. If it is not forthcoming, the secretary will take it 
up with him, but we prefer to have you send it to us. 

Mr. Clarence W. He Knight. I will see that it is sent to you. 
That is, a list of the stockholders, the amount of stock held by each, 
and the dividends that have been paid? 

Mr. Blackmon. Yes. 

STATEMENT OF MR. ELLIOTT WOODS, SUPERINTENDENT OF THE 

UNITED STATES CAPITOL. 

Mr. Woods. I think I ought to make the statement that, so far as 
the mail facilities and the operation of the pneumatic tube for mail 
service are concerned, I do not think I can be of any assistance to 
you at all. because I know nothing at all about them. I assume that 
information can be obtained from your post-office authorities. I am 
willing to answer any questions relating to the Capitol and the other 

buildings here. „ ' , . „ 

The Chairman. We want the benefit of such information as you 

can give the commission, what you think of the pneumatic tube over 
on the House side, and whether you think it would be beneficial for 
the Government to adopt such a system. 


108 


PNEUMATIC-TUBE SYSTEM. 


Mr. Woods. I think it would be very beneficial for the Government 
to have a pneumatic-tube service, operated by its own officials and 
owned by the Government. As I understand the pneumatic-tube 
service now, most of it is under contract. 

The Chairman. That is right. 

Mr. Woods. Personally, I should prefer the operation of a mail 
service owned by the Government. So far as this tube installed at 
the Capitol as an exhibition is concerned, that was installed under 
orders of the House commission as an exhibition plant; but to pre¬ 
vent a claim coming back on the Government that company was com¬ 
pelled to sell that tube at a nominal cost to the Government. I think 
it was $1,000 that the Government paid for it. 

It has never been put into practical operation, for the reason that 
we have no authority to hire employees to operate it. It was turned 
over to the House folding room to experiment with in the transporta¬ 
tion of documents between the House document room and the House 
Office Building. For that reason, I think it would be a good thing 
to have an exhibition of that system, or a similar system, made be¬ 
tween the Printing Office and the buildings on the hill, both for mail 
service and the transportation of documents If the post-office 
authorities are satisfied with the present size of tube for the trans¬ 
portation of the mail, I would recommend that a large tube of some 
character be installed for the transportation of documents. 

The Chairman. Would it be any larger than the present tube in¬ 
stalled over there? 

Mr. Woods. Since that tube was installed half a dozen schemes have 
been proposed for larger tubes. One coming in lately provides for 
a 30-inch tube, with an electric carrier, and I think, for documentary 
service, a large tube is the thing. I believe that perhaps it would 
operate more economically if the car were driven by electricity than 
by any pneumatic service. In running these systems between the 
buijdings I should think it ought to carry a large tube for documents 
and a smaller tube for mail. 

The Chairman. How small a tube would answer the purpose for 
mails? 

Mr. Woods. I know nothing about that, Senator, except what the 
Post Office Department has stated about it. What is the largest tube 
they have? 

Mr. Masten. Eight-inch is the standard adopted, after a thorough 
investigation. 

Mr. Woods. The thing that has appealed to us, or rather to the 
members of the commission, was the fact that up to this time they 
had been told—and I had been told—that an 8-inch tube was about 
the standard-size tube. That would seem to be too small for the 
transportation of ordinary documents such as we have to transport 
between the Printing Office and the Capitol. The fact that this tube 
was an 18-inch tube appealed to us, because it was claimed that it 
could transport the equivalent of a bag of books, and I think that has 
been shown. 

I have a little memorandum here which I will furnish the com¬ 
mittee, if you have not the information already at hand, as to the 
cost of operation of that tube, such as our engineers figure it. 

The Chairman. That is very important. They are your figures? 

Mr. Woods. They are made by our engineers. 


PNEUMATIC-TUBE SYSTEM. 


109 


Hie Chairman. Have you noticed any defects in the system over 
there ? 

Mr. Woods. I do not know of any myself. The trouble is it has 
not been operated long enough to test its"real value. 

The Chairman. What is the cause of the failure to test it? 

Mr. Woods. It is really the failure of the House side to provide 
employees. 

The Chairman. In other words, there has been no money on hand ? 

Mr. Woods. It has not been taken up seriously by the House folks 
at all. 

It would be easy, I think, for two or three of the House folding- 
room employees to be educated in the operation of it. It is very 
simple as I see it; although it might not seem simple to a man who 
has no mechanical turn of mind. 

Mr. Blackmon. Mr. Woods, have you made any investigation, or 
have you made any calculation, with reference to the cost of the 
present system of transporting these documents, as compared with 
the cost of operating the pneumatic tube? 

Mr. Woods. I have not. The Public Printer, I think, has made a 
statement, which I think will be found in the hearing before the 
Committee on Public Buildings and Grounds of the Senate, of June 
7, 1912. You will find in that hearing a great deal of interesting 
information. 

Mr. Blackmon. Mr. Chairman, would it be a bad idea to print in 
the record that part of the report that deals particularly with the 
question of cost? 

The Chairman. I think it would be very advantageous. 

Mr. Blackmon. So that we could have it all in. 

The Chairman. There is no objection to this information about the 
cost going into the record, Mr. Woods? 

Mr. Woods. Not at all. In fact, in that hearing you will find a 
letter I wrote to the chairman of that committee advising in favor 
of pneumatic transportation between the buildings. It is more a 
question of operation between the Printing Office and the buildings 
on the hill, because we have a great many documents, and I think 
you will find the Public Printer has made a statement in reference 
to that. 

Mr. Blackmon. That is what I would like to have go in the record 
also, Mr. Chairman. 

The Chairman. Very well. 

Mr. Woods. In this memorandum I have, assuming continuous op¬ 
eration over there, with the carriers traveling about as fast as they 
could succeed one another, it figures out—that is, without the services 
of the employees, but just the cost of operation—at the rate of about 
5 cents a ton for books. If I had known that, I could probably take 
the figures of the Public Printer and find out just what that sort of 
a system would cost. I think you will find, if you go in for pneu¬ 
matic and other transportations, that a great development in all these 
matters will be made with outside pneumatic service for mails; you 
will find that inventors will bring forth very good ideas for book 
transportation. The Public Printer, I think,"is heartily in favor of 
some method of that character, either pneumatic or otherwise, for 


110 


PNEUMATIC-TUBE SYSTEM. 


the transportation of documents, and I believe you will find in his 
communication some interesting figures. 

I assume I may speak about another matter, because it relates to 
the transportation or the handling of the mails. The House of Rep¬ 
resentatives established their post office in the main vestibule of the 
rotunda in the House Office Building. We provided for similar space 
here in this building. The House operates its main post office at the 
House Building with a substation at the Capitol. For instance, it 
would be very desirable to have a pneumatic service between that 
post office and the Capitol, but for that purpose I would not recom¬ 
mend that apparatus; it is too clumsy; it is not quick enough, and a 
small tube would be serviceable for that particular purpose. You 
could carry along with the construction of larger tubes for book 
transportation, or smaller tubes for mail transportation, an operating 
system of that character economically. 

The Chairman. Is it not true, Mr. Masten, that the 8-inch tubes 
are practically owned by one company? 

Mr. Masten. All but those in Philadelphia are controlled by the 
American Pneumatic Service Co.; in Philadelphia they are con¬ 
trolled by the Pneumatic Transit Co. of New Jersey. 

Mr. Woods. I would suggest that the chairman of the House Office 
Building Commission be requested to confer with Mr. Fitzgerald 
with a view of having two employees of the folding room detailed to 
experiment with the pneumatic service now installed in the House. 

The Chairman. Flow is the mail being handled now for the use 
of the Senate and the House? 

Mr. Woods. By wagons. If my memory serves me right, it goes to 
the general post office first, and is there handled in the substation, 
and delivered to the Capitol by wagons, and distributed in wagons. 

The Chairman. Then how is it handled from the House Office 
Building and the Senate Office Building to the Capitol ? 

Mr. Woods. By messengers. 

The Chairman. Entirely by messengers? 

Mr. Woods. Yes, sir. 

The Chairman. Do you not believe considerable time could be 
saved by some pneumatic device ? 

Mr. Woods. Certainly. 

The Chairman. Is it not true that at the last end of a session of 
Congress, when there are hundreds of bills ready for signature, they 
have to be engrossed in the Printing Office—they are printed on 
parchment—and every one of those bills has to go backward and for¬ 
ward from the Government Printing Office to the Capitol by mes¬ 
senger ? 

Mr. Woods. That is not all of it. Every important committee has 
more or less work to do on bills during a session. The first part of 
the transaction is that the bill is made up. That has to go backward 
and forward. Then the committee acts on the bill, and makes changes 
in it, and that goes backward and forward to the Printing Office. 
And so it continues, until the bill finally comes out in the Senate or 
the Plouse. That transportation is by messenger service with all of 
the important committees of the Senate and the House. 

The Chairman. Unless you have something else, Mr. Woods, we 
are very much obliged to you. 

Mr. Woods. I have nothing else, I believe. 


PNEUMATIC-TUBE SYSTEM. 


Ill 


The Chairman. Mr. Masten, has an auditor or an engineer ever 
been employed in the past to make an independent investigation for 
the benefit of former commissions? 

Mr. Masten. The only congressional commission that I recollect 
was the Wolcott and Loud Commission, who employed only a secre¬ 
tary and the necessary stenographers; I think no engineer or auditor 
was employed by them. The congressional investigation authorized 
in 1908 was through the Postmaster General, he being allowed an 
appropriation of $10,000 to conduct the necessary investigations into 
the cost of construction, operation, maintenance, etc.; and the 
Postmaster General proceeded through the appointment of a com¬ 
mittee of seven individuals from private life, representing commer¬ 
cial, engineering and technical information. That report was sub¬ 
mitted to Congress through the Postmaster General. 

The Chairman. And you say there Avere some engineers on that 
commission appointed by the Postmaster General ? 

Mr. Masten. Yes, sir. Mr. Alfred Manning, of Baltimore, was 
an engineer who had constructed the Baltimore & Ohio tunnel; 
Mr. Lyman Cooley was a mechanical and civil engineer of Chicago 
of much experience; Mr. Frye was an engineering expert from the 
Navy and Treasury Departments combined, whose headquarters was 
in New York. 

Thereupon, after informal discussion, the commission adjourned 
to meet to-morrow, Wednesday, December 18, 1912, at 11 o’clock 
a. m., in executive session. 


Appendix. 

Report of the Public Printer. 

Office of the Public Printer, 

Washington, May 17, 1012. 

My Dear Senator: Referring to the communication from Mr. Horace H. 
Smith, assistant clerk Committee on Public Buildings and Grounds, United 
States Senate, dated April 30, 1912, including copy of an amendment providing 
for a pneumatic-tube system between the Capitol, Government Printing Office, 
and other Government buildings, and requesting that the same be considered 
and a report made thereon, I have the honor to submit the following informa¬ 
tion : 

The total cost of delivery by messenger service and horse-drawn vehicles 
from November 14, 1910, to November 13, 1911, was $57,645.47. On November 
14, 1911, electric vehicles were substituted for most of the horse-drawn vehicles, 
which will result in an estimated yearly saving of $15,000. 

Using this estimate as a basis, the yearly delivery from the Government 


Printing Office will cost $43,000, as follows: 

To Capitol, House, and Senate Office Buildings-$7,300 

To Congressional Library- U 300 

To departments and bureaus- 26, 000 

To railroad yards (postal cards)- 6,500 

To Post Office_ T ^90 


Total_$43,000 


Eliminating postal-card shipments, which are direct to the railroad yards, I 
am of the opinion that 80 per cent of our deliveries are of such a nature as to 
permit their forwarding by means of a pneumatic or electric system at a con¬ 
siderable saving in the cost of maintenance and operation, and that the 
handling of work would be greatly expedited. 










112 


PNEUMATIC-TUBE SYSTEM. 


With the hope that the information contained herein will be of use to your 
committee, I am, 

Yours, very truly, Samuel B. Donnelly, 

Public Printer. 

Hon. George Sutherland, 

Chairman Committee on Public Buildings and Grounds, 

United States Senate, Washington, D. C. 

The following memorandum was submitted by Mr. Woods: 

Eighteen-inch Pneumatic Tube Line between the Capitol and the House 

of Representatives Office Building. 

COST OF HAULING CARRIERS—LOADED OR UNLOADED. 

Power cost per hour, 150 amperes, 110 volts, 16,500 watts or 16.5 kilowatts, 
at 2 cents per kilowatt hour, 33 cents per hour. 

Capacity of line, 150 pounds per carrier, 4 carriers per minute or 24 carriers 
per hour, will haul 36,000 pounds, or 18 tons. 

One hundred pounds per carrier, sending 2 carriers per minute, will handle 
200 pounds per minute, or 12,000 pounds, making 6 tons that can be hauled 
per hour. 

Carriers will hold easily a No. 2 tie sack of the post-office regulation size. 

Tests have been made with various documents and papers, from the folding 
room. 

One carrier will hold 16 bound volumes of the Congressional Record, weigh¬ 
ing 104 pounds; 42 copies, in No. 2 tie sack, and weighing 131 pounds. Carrier 
has also been filled with loose papers of all kinds and sizes, a total weight of 113 
pounds. 

Washington, D. C., January 10, 1912. 


Washington, D. C., Wednesday , January 8 , 1913. 

The commission met at 2.30 o’clock p. m. 

Present: Senator Simon Guggenheim (chairman), Representative 
Victor Murdock and Hon. Joseph Stewart, Second Assistant Post¬ 
master General. 

STATEMENT OF J. E. MILHOLLAND, ESQ., OF LEWIS, N. Y., A 

STOCKHOLDER IN THE PNEUMATIC TRANSIT CO. OF PHILA¬ 
DELPHIA. 

Mr. Milholland. Mr. Chairman and gentlemen, I appear here 
to-day because the president of the Philadelphia Co., Mr. James B. 
Mabon, is unable to be present. I wish to express his regret that he 
could not come. 

The Chairman. Will you kindly give us all the information on 
the subject you can? 

Mr. Milholland. My remarks will be brief. In this I hope they 
will be typical of the whole Philadelphia presentation. We are more 
or less familiar with what has been presented here in behalf of the 
other companies, and we have no desire to traverse the same routes 
that they have traversed. It is the intent of our people to discuss 
only those things that have not been touched upon or have not been 
sufficiently elaborated. 

In a general way, the positions taken by our friends the Boston 
people are reaffirmed by the Philadelphia Co.; a willingness to sell 
on proper valuation and also an advancement of the idea that they 



PNEUMATIC-TUBE SYSTEM. 


113 


threw out in regard to a readjustment of the contracts instead of a 
direct, immediate cash sale. That suggestion appeals with particular 
force to Philadelphia. It is the one point upon which I would dwell 
for a moment. The idea put forth, you will remember, was the sub¬ 
stitution of 50-year contracts for the short-term arrangement now 
in operation. Fifty years is quite a long time, but in offering it the 
companies express faith in the permanence of the systems. We think 
it would be entirely safe to take a very much shorter period. We 
believe that we can work out a plan for half that period; say 25 or 
30 years, and, by an amortization process, achieve results enabling 
the Government to obtain the plants in good order at the termina¬ 
tion of the contracts. The 50 years’ expression is valuable, as I 
remarked, in showing the confidence of the owners of the systems in 
their endurance—their longevity. We are perfectly confident that 
at the end of half a century the systems will be in good condition. 
The details of the amortization, wherein may be involved a slight in¬ 
crease of rentals, will be brought out later in tabulated statements 
prepared or interpreted by the gentlemen who will follow me—Mr. 
Murray, the treasurer of the Philadelphia company, Mr. Stuart, 
who has been the chief engineer and has had considerable experience 
abroad, and Mr. Stevenson, one of the attorneys for the company. 

The companies are prepared to go right on as they are at the 
present time and build whatever the Government desires to have 
built; but they want to be relieved of this tremendous difficulty that 
confronts them in connection with the business, namely, the prac¬ 
tical impossibility of marketing securities on these short-term con¬ 
tracts. That has been already thrashed out here, so that I need not 
go into it further. The idea of having the business brought into 
such shape that there would be no hiatus whatever in this develop¬ 
ment is paramount in our minds. If the Government in its wisdom 
should think it well to make immediate purchase, we are quite pre¬ 
pared to meet the Government on every possible point; on a system 
of amortization, on a valuation, and some of the other suggestions 
made here, such as that which includes capitalization of the earn¬ 
ings on a 6 per cent basis; and, also, there was another suggestion 
coming originally, I believe, from the Interstate Commerce Commis¬ 
sion, in valuing railway property; about the value of the going con¬ 
cern, the original cost and the cost of reproduction, divided by three. 
We are quite willing to give careful consideration to any of those 
methods of acquisition, but of them all amortization seems most in 
keeping with sound, modern methods, and is gaining further favor 
at home and abroad. 

So much by way of introduction; if something comes up in the 
course of the discussion to follow I would be glad to avail my¬ 
self, on behalf of Mr. Mahon, of an opportunity to make a further 
statement. 

Mr. Stewart. I presume you have figures on these various plans 
suggested ? 

Sir. Milholland. Yes; they will be submitted by the other gen¬ 
tlemen. Mr. Murray will now take up the matter in behalf of the 
company. 

78419—13-S 


114 


PNEUMATIC-TUBE SYSTEM. 


STATEMENT OF MR. W. P. J. MURRAY, OF PHILADELPHIA, TREAS¬ 
URER OF THE PNEUMATIC TRANSIT CO. AND THE INTERNA¬ 
TIONAL PNEUMATIC TUBE CO. 

Mr. Murray. Mr. Chairman and members of the commission, I 
have here a map of the system in Philadelphia, which I would like to 
leave with the commission. (Exhibit F.) 

The pneumatic transit system in Philadelphia consists of approxi¬ 
mately 10 miles of double 8-inch pneumatic tubes. It connects the 
central post office with the Bourse Station. This is the earliest line 
that was constructed in the world in what is known as large pneu¬ 
matic tubes. It is 6 inches in internal diameter and some 0.56 mile 
in length. It was constructed in 1892 and placed in operation early 
in February, 1893, during the administration of Postmaster General 
Wanamaker. 

The next construction in the city of Philadelphia was at Broad 
Street Station, in the year 1897. I do not wish to unnecessarily 
take up the time of the commission, but in order to state the develop¬ 
ment of our system I wish to relate the construction of the lines in 
detail and the time they were constructed and what they were. In 
1898 the central post office to Broad Street Station line was con¬ 
structed. In 1905, the lines known as “ central post office to Stations 
S and O ” were constructed. In 1908 the line from Southwark 
Station to Station D was constructed, and, in -1910, the last line to 
North Philadelphia and Fairhill Station were constructed, although 
in the year 1909 the Reading Line was rebuilt from the central post 
office to the Reading terminal station. 

The Pneumatic Transit Co. is capitalized in the original capital¬ 
ization as $500,000 of common stock, which is still outstanding. 
Subsequently, in 1897, there was a bond issue of some $200,000, all 
of which figures, of course, we will present in the balance sheet, and 
the subsequent construction from 1905 was all financed by the pre¬ 
ferred stock, which is oustanding to the extent of $996,900, making 
a total capitalization of $1,696,900. The tangible property in assets 
represented by this capitalization consists of our plant and our earn¬ 
ings statement, as compiled by Messrs. Lybrand, Ross Bros, and 
Montgomery, which will be presented to the commission for the year 
ending March 31, 1912, shows approximately an earning of $85,000 
per year for our plant. 

The Pneumatic Transit Co. constructed its lines under various 
ordinances, the most recent of which was granted in 1907 by the 
city of Philadelphia, and a copy of that will be submitted to the 
commission. 

The ordinance above referred to reads as follows: 

An ordinance authorizing the Pneumatic Transit Company to lay tubes with branches 
switches, and electrical conductors in certain streets in the city of Philadelphia. ’ 

Section 1 . The Select and Common Councils of the city of Philadelphia do 
ordain , That the Pneumatic Transit Company is hereby authorized to lay and 
maintain and operate pneumatic tubes or pipes, and to lay with the said "tubes 
or pipes conduits and electric conductors and to construct manholes, switches, 
and drips that may be required to operate the said tubes in such streets and 
alleys as shall be selected by the board of highway supervisors to connect the 
general post office, railway stations, and branch post offices within the limits 
of the city of Philadelphia, for purposes of transmitting the United States 
mails, with the right to connect the power house of the said company with the 


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PNEUMATIC-TUBE SYSTEM. 


115 


said lines of tubes and conduits if located wit bin two squares of said lines: 
Provided , That nothing herein contained shall be construed as granting a right 
to use the highways for any other business than that of transmitting the United 
States mails through pneumatic tubes. The said tubes, branches, connections, 
switches, conduits, manholes, and other parts shall be laid and constructed in 
such manner as shall be satisfactory to the department of public works and 
in accordance with plans to be approved by said department, and the company 
shall, in each case where the streets are torn up, restore the streets to the 
same condition in which they were found. The work of laying said tubes and 
conduits herein authorized shall be begun within 12 months after the approval 
of this ordinance, and be completed within five years from the said approval, 
after which time the right to occupy the streets not already actually occupied 
shall cease and determine. The granting of this right to the company shall, 
however, not be construed as giving them the exclusive use of any street for the 
purpose of laying conduits therein. 

Sec. 2. Wherever the said company shall break a street or alley they shall 
repair the same under the specifications of the department of public works, 
repaving over the trench and one foot on each side, keeping it in repair for 
three years: Provided, Where it is necessary to break a street paved with im¬ 
proved pavement occupied by a street passenger railway company, they shall 
pay into the city treasury the price paid by the city to its contractor for repair¬ 
ing such pavement for each square yard of pavement broken and 5 per cent in 
addition thereto for inspection, and shall be at no further cost or expense on 
account thereof. Whenever the said company shall break a sidewalk of a 
street they shall repair the same in an approved manner, and keep it in repair 
for three years. 

Sec. 3. Before any work shall be done under this ordinance the said company 
shall file with the mayor its bond in the sums of $25,000 in form to be approved 
by the city solicitor, conditioned that it will indemnify the city and owners of 
property against any and all damages caused by construction or operation of 
its work, and for the faithful performance of all the provisions and agreements 
of this ordinance, and shall also pay into the city treasury the sum of $50 for 
printing this ordinance. 

July 1, 1907. 

We have also here a list of the patents under which the company 
operates. I think they are 71 in number. 

The list of patents referred to is as follows: 

The Pneumatic Transit Co. has the exclusive license for using, selling, or 
operating in the city of Philadelphia or within a radius of 20 miles of the city 
of Camden, N. J., all of the patents in the following list: 


Patent 

No. 

Date issued. 

Inventor’s name. 

567067 

Sept. 1.1896 

B. C. Batcheller. 

568291 

Sept. 22.1896 

.do.! 

585498 

June 29,1897 

.do. 

585647 

July 6,1897 

.do. 

590181 

Sept. 14,1897 

.do. 

595754 

Dec. 21,1897 

.do. 

5Q5755 

do . 

.do. 

5Q5756 

do 

_do. 

602422 

Apr. 19,1898 

.do. 

623968 

May 2,1899 

.do. 

693969 

do 

. .do. 

623970 

do 

... .do. 

623971 

do 

. .do. 

623972 

do . 

.do. 

623973 

do 

_do. 

657078 

Sept. 4,1900 

.do. 

fis7079 

do.. 

_do. 

666175 

Jan. 15,1901 

.CO. 

700607 

May 20.1902 

.do. 

706291 

Aug. 5,1902 

.do. 

707071 

Aug. 19,1902 

.do. 

721476 

Feb. 24,1903 

.do. 

722667 

Mar. 17,1903 

.do. 


Description. 


Carriers for pneumatic transmitting apparatus. 

Valve mechanism for pneumatic transmitting pipes. 
Pneumatic dispatch apparatus. 

Electropneumatic circuit closer. 

Carriers for pneumatic dispatch apparatus. 

Substation sending apparatus for pneumatic dispatch 
tube system. 

Pneumatic dispatch tube system. 

Sending apparatus for pneumatic dispatch system. 
Apparatus for locating obstructions in tubes. 
Pneumatic transmitting system. 

Do. 

Pneumatic dispatch apparatus. 

Do. 

Carriers for pneumatic dispatch apparatus. 
Carrier-receiving mechanism for pneumatic transmit¬ 
ting tubes. 

Packing devices annular joints. 

Carriers .'or pnei matic transmitting tubes. 

Pipe c ouplings. 

Sending apparatus for pneumatic c ispatch system. 
System and apparatus for transmitting carriers in pnem 
matic dispatch tubes. 

Pneumatic time locks for pneumatic tube systems. 
Apparatus for ascertaining condition of pipe conduits. 
Pneumatic transmitting system. 



































































116 


PNEUMATIC-TUBE SYSTEM. 


Patent 

No. 

Date issued. 

Inventor’s name. 

Description. 

740260 

1 'ec. 8,1903 

.do. 

Sending devices for pneumatic tubes. 

74G267 

_do. 

.do. 

Pneumatic dispatch apparatus. 

749152 

Jan. 12,1904 

.do. 

Pneumatic dispatch system. 

627181 

June 20,1899 

Fordyce. 

Pneumatic carrier. 

635434 

Oct. 24,1899 

.do. 

Terminal for pnuematic tubes. 

654690 

July 31,1900 

Townsend. 

Pneumatic dispatch tubes. 

666747 

Jan. 29,1901 

Fordyce. 

Carrier for pneumatic dispatch tubes. 

683022 

Sept. 24,1901 

Cowley. 

Pneumatic dispatch tube apparatus. 

683140 


Pike. 

Terminal for pneumatic dispatch apparatus. 

683141 

_do. 

.do. 

Do. 

683387 

.do. 

Cowley. 

Pneumatic dispatch tube apparatus. 

684715 

Oct. 15,1901 

Pike. 

Complete pneumatic dispatch tube terminals. 

685674 

Oct. 29,1901 

Cowley. 

Transmitter for use in pneumatic dispatch tube appa¬ 
ratus. 

689043 

Dec. 17,1901 

Fordyce. 

Pneumatic dispatch tube svstem. 

698830 

Apr. 29,1902 

.do. 

Pneumatic dispatch tube. 

703120 

June 24,1902 

Danley. 

Pneumatic carrier system. 

706639 

Aug. 12,1902 

Cowley. 

Pneumatic dispatch apparatus. 

722.562 

Mar. 10,1903 

Burton. 

Carrier for pneumatic dispatch tube apparatus. 

726022 

Apr. 21,1903 

.do. 

Pneumatic carrier. 

726017 

.do. 

Blanchard. 

Lock for pneumatic dispatch tube carriers. 

626097 

.do. 

Pike. 

Pneumatic carrier. 

742513 

Oct. 27,1903 

Stoddard. 

Pneumatic dispatch apparatus. 

742514 

.do. 

.do. 

Do. 

742515 

.do. 

.do. 

Do. 

742516 

.do. 

.do. 

Do. 

742517 

.do. 

.do. 

Do. 

742390 

.do. 

Burton. 

Pneumatic carrier. 

758568 

May 24.1904 

Stoddard. 

Pneumatic dispatch apparatus. 

760658 

.do. 

.do. 

Circuit breaker. 

760569 

.do. 

.do. 

Pneumatic dispatch apparatus. 

768030 

Mar. 23,1904 

Burton. 

Pneumatic carrier. 

768031 

Aug. 23,1904 

.do. 

Pneumatic dispatch apparatus. 

772973 

Oct. 25,1904 

Stoddard. 

Do. 

775949 

Nov. 29,1904 

.do. 

Do. 

779638 

Jan. 10,1905 

Burton. 

Carrier for pneumatic dispatch apparatus. 

780595 

Jan. 24,1905 

.do. 

Do. 

782106 

Feb. 7,1905 

Stoddard. 

Pneumatic carrier. 

783151 

Feb. 21,1905 

.do. 

Pneumatic dispatch apparatus. 

784225 

Mar. 7,1905 

Pike. 

Do. 

790456 

May 23,1905 

.do. 

Pneumatic dispatch tubes. 

790457 

.do. 

.do. 

Do. 

796263 

Aug. 1,1905 

Stoddard. 

Carrier for pneumatic dispatch tube apparatus. 

800884 

Oct. 3,1905 

.do. 

Pneumatic dispatch apparatus. 

1040810 

Aug. 22,1912 

K. E. Stuart. 

Electric dispatch system. 

1040811 

Oct. 10,1912 

.do. 

Do. 

1 693974 

.do. 

.do. 

Do. 

1 581208 

Pending. 

.'...do. 

Do. 

i- 693973 

.do. 


Do. 


1 Serial number. 


In a report of the Pneumatic Tube Commission, made in 1908, on 
page 30 there is an estimate of what is known as the percentage of 
operation, showing the efficiency of the pneumatic tube and how 
much of its efficiency was utilized. The commission figured its cal¬ 
culations on a basis of the transmission of some 4,800 carriers for a 
period of 20 hours’ operation in each direction for a day, or on a 
basis of a headway of from 13 to 15 seconds per carrier. Now, in 
Philadelphia at the present time, and also in the history of the indus¬ 
try there, that has not been an accurate statement of the situation, 
as we transmit carriers there on a headway from 6 seconds up to 10 
seconds without a particle of difficulty, owing to the type and char¬ 
acter of our machinery. 

I have here a statement showing a comparison of the Philadelphia 
tube service on November 1, 1912, with the tube service as given in 
the Pneumatic Tube Commission report of 1908. This comparison 
is made for the purpose of showing the increase in the use of the 
pneumatic tube in the four intervening years from the time of the 
report made by the commission in 1908 until the date that we have 









































































































PNEUMATIC-TUBE SYSTEM. 


117 


used here, which is November 1 , 1912. The tube carriers dispatched 
from the post office to the Pennsylvania Railroad station, as given 
on page 59 of the commission’s report, and to the various other lines, 
are enumerated in the second column. The percentage of operation 
is given in the third column and is shown on page 30 of the 1908 
report of the Pneumatic Tube Commission. In the report, through 
some slight miscalculations, the percentage as figured out is a little 
erroneous, and I have shown the corrections in the third column. 

The percentage of operation is calculated on the basis of a maxi¬ 
mum dispatch of 9,600 carriers in both directions in a period of 20 
hours, and it figures out at 33 per cent on the general post office to 
the Pennsylvania Railroad line, and on the Pennsylvania Railroad 
line to Station J the percentage of efficiency instead of being 4.5 is 
6.6; from Station J to Station C the percentage instead of being 2.75 
was, in 1908, 4. In the case of the general post office to Station S 
the percentage of efficiency instead of being 5.5 was 8.3; from Sta¬ 
tion S to Station O the percentage instead of being 3.5 was 5.4. 
In the fifth column there is shown the number of tube carriers 
dispatched on November 1, 1912, and in the sixth column is given 
a percentage of the various lines of operation based on an effi¬ 
ciency of a maximum of 9,600 carriers both ways. You will notice 
that the percentage figured out for the general post office to the 
Pennsylvania Railroad Station is 44.3; Pennsylvania Railroad Sta¬ 
tion to Station J, 11.4; Station J to Station C, 6.5; from the 
general post office to Station S, 22.5; from Station S to Station O, 
20.7; from the general post office to the Bourse Station, 35.5; from 
the general post office to the Southwark Station, 10.6; from the 
Southwark Station to Station D, 6.06; from the general post office to 
the Reading Terminal, 12.8; from Station O to Fairhill, 17.4; and 
from Fairhill to North Philadelphia, 10.4. 

The percentage of increase as shown by the records of November 1, 
1912, over the records as given in the report of the Pneumatic Tube 
Commission of 1908 is enumerated in the last column. It shows the 
percentage of increase in what is known as the general post office to 
the Pennsylvania Railroad Station line as 34.2; the Pennsylvania 
Railroad Station to Station J line, 72.7; the Station J to Station C 
line, 62.5; the general post office to Station S line, 171; and you will 
notice that these figures now become very interesting; the percentage 
of increase from the Station S to Station O line is 283.3; and the 
increase on the general post office to the Bourse Station line 117.7. 
The remaining lines, of course, were not operating in the year 1908. 

Mr. Stewart. What was the basis you used, Mr. Murray, for your 
percentages ? 

Mr. Murray. That question immediately raises another question: 
Was every carrier dispatched filled with mail? Our basis of calcula¬ 
tion is the number of carriers transmitted over the line during that 
period, and candor compels us to acknowledge that some of those 
carriers were not filled with mail, especially when there was a heavy 
mail transported between two points. It is sometimes necessary to 
send back certain empty carriers in order to transmit all the mail 

between the two points in question. 

Mr. Stewart. What is your basis for figuring your rates of per¬ 
centage? That is, what is the frequency of your dispatch? 


118 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murray. The percentage that I have used is the percentage 
that was used in the 1908 report, which is a maximum transmission 
of 9,600 carriers, being considered 100 per cent. Now, that, of 
course, while it was used by the commission in its investigation on 
that occasion, is not the situation with our lines. All our lines have 
what are known as open receivers. In the place of emerging from 
the pneumatic-tube line by going through a gated or valve device, 
our carriers emerge in the open air by going up through the base¬ 
ment of the post office and killing the carrier’s velocity by the cen¬ 
trifugal receiver, which allows the carrier to come in uninterrupted. 
In a heavy mail transported between the central post office and the 
Broad Street Station we frequently send carriers on a four-second 
headway. On a four-second headway the number of carriers that 
can be transmitted is something startling. I think it figures out in 
the neighborhood of 36,000 carriers for a period of 20 hours’ dura¬ 
tion. I feel confident that we could operate the Philadelphia lines 
for a period of 20 hours and transmit through those lines in both 
directions at least 28,000 carriers, although the commission in 1908 
figures the maximum efficiency at 9,600 carriers per day. 

Mr. Stewart. What headway would that be? 

Mr. Murray. A five-second headway, or 12 carriers per minute. 

Mr. Stewart. Nine thousand six hundred carriers? 

Mr. Murray. No; 9,600 would be in the neighborhood of 15 sec¬ 
onds; 28,000 carriers transmitted in both directions for a period of 
20 hours would be at a headway of 5 seconds, or 12 per minute, or 
720 per hour, or 14,400 in one direction and 28,800 in both direc¬ 
tions. That is to say, speaking from my knowledge of the matter and 
my familiarity with the operation of the company, I feel that we 
can transmit that number of carriers through any line the commission 
suggests. 

The table referred to by Mr. Murray as showing the comparison 
of the Philadelphia tube service on November 1, 1912, with the tube 
service as given in the Pneumatic Tube Commission report of 1908, 
is as follows: 


Comparison of the Philadelphia tube service on Nov. 1, 1912, with the tube serv¬ 
ice as given in the Pneumatic Tube Commission report of 1908. 


Line. 

Miles. 

Tube car¬ 
riers dis¬ 
patched 
as per 
1908 
report. 
(See p. 
59.) 

Per cent 
of opera¬ 
tion given 
in report 
of 1908. 
(See p. 

30.) 

Per cent 
of opera¬ 
tion as 
given in 
report 
corrected. 

Tube car¬ 
riers dis¬ 
patched 
Nov. 1, 
1912. 

Per cent 
of opera¬ 
tion on 
Nov. 1, 
1912. 

Per cent 
of in¬ 
crease. 

General post office to Pennsylva¬ 
nia R. R. Station. 

Pennsylvania R. R. to Station J. 

Station J to Station C. 

General post office to Station S.. 

Station S to Station O. 

General post office to Bourse Sta¬ 
tion. 

General post office to Southwark 
Station. 

0.72 

1.23 

.88 

1.41 

1.21 

.56 

1.015 

.872 

.279 

1.164 

.623 

3,171 

641 

392 

802 

522 

747 

33.0 

4.5 

2. 75 

5.5 

3.5 

16.3 

33.0 

6.6 

4.0 

8.3 

5.4 

16.3 

4,262 
1,096 
625 
2,162 
1,990 

1,620 

1,027 

581 

1,230 

1,675 

1,006 

44.3 

11.4 
6.5 

22.5 

20.7 

35.5 

10.6 
6.06 

12.8 

17.4 

10.4 

34.2 

72.7 

62.5 

171.0 

283.3 

117.7 

Southwark to Station D. 





General post office to Reading 
Terminal. 





Station O to Fairhill. 





Fairhill to North Philadelphia... 










Note.—T he percentage of operation is calculated on the basis of a maximum dispatch of 9,600 carriers 
hi both directions in a period of 20 hours or 4,800 each way. 





































PNEUMATIC-TUBE SYSTEM. 119 

In the Pneumatic Tube Commission’s report of 1908, on page 9, 
under the subject of u Headway,” the following appears: 

The closest interval between two carriers originally expected to be six 
seconds, is now 13 to 15 seconds, so that the total number of letters dispatched 
one way per hour is rated at 108,000 instead of, as in the early days, 360,000. 

The argument which I have just advanced to this commission is 
pertinent to that point. In the early days of pneumatic-tube service 
the number of letters transmitted in a carrier was supposed to be 
some 600, although at the time of the report of the commission of 
1908 the commission figured on a basis of some 450 letters being 
transmitted in each carrier, which consequently would cut down the 
number of letters very materially. The mere fact that the commis¬ 
sion’s conclusion as to 450 letters is probably true in no way cuts 
down the capacity of the carrier. Its cubic contents are absolutely 
the same they were when the 8-inch tube was put in operation, but 
owing to the advance in the use of the typewriter the tendency now 
when transmitting a letter is to fold that letter only two times and 
to send it in such a way that it occupies more space. In the old days 
they folded a letter until it presented six sections and used a short 
letter. To-day a majority of the envelopes are very large; that is, in 
comparison with what they were in the infancy of the pneumatic- 
tube system. 

The availability of the tube service is something that commends 
itself very highly to the transportation of mail; in fact, in the city 
of Philadelphia to-day we connect up our 10 miles with 12 postal 
stations. As I stated, the lines range from a quarter of a mile in 
length to 1.41 miles in length, and it means 22 individual lines, or 11 
double lines. That means that in the transportation of mail we have 
22 individual lines, each one of which is capable of transmitting every 
minute 12 carriers, or a gross number of carriers transmitted during 
a minute’s time in our system of 264. The weight that is transmitted 
in an individual carrier is approximately 20 pounds of mail matter, 
or each minute our system can transport 5,280 pounds, and that 
first-class mail matter is worth $1 per pound. It has often been 
stated that the tube service is extravagant; that it has cost more than 
it justified. When you take into consideration that a screen wagon 
traveling 1 mile costs in the neighborhood of 38 cents, a trolley car 
approximately 20 cents per mile, and automobile from 22 cents to 
32 cents, the pneumatic-tube service amply justified itself for mail 
transportation. As the report of 1908 shows, the cost of transporting 
a letter by pneumatic tube was less than six-tenths of 1 mill. 

In an investigation concerning the purchase of the physical prop¬ 
erty of any corporation, the question naturally presents itself: What 
is that property worth? 

Mr. Murdock. Before you go into that matter there is one question 
about the system concerning which I would like some information. 
There is a system from the general post office to the Bourse Station, 
and in the report of 1908, on page 27, this notation appears under 
the subhead “ Philadelphia ”: 

The postmaster reports that the 6-inch tube line between the general post 
office and. the Bourse Station is inadequate for satisfactory service and should 
be increased to an 8-inch line. 

Was any such increase made? 


120 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murray. No, sir; the line to-day exists as it was in 1908, and 
as it was in 1892. 

Mr. Murdock. It is the same line? 

Mr. Murray. It is the same identical line; there has been no in¬ 
crease in it in any way, shape, or form, except that we have made a 
slight change in the terminal machinery. 

Mr. Murdock. And so far as inadequacy is concerned, there has 
been no change in the service between those points save as is evi¬ 
denced in this table that you have just spoken of? 

Mr. Murray. So far as the inadequacy of the line is concerned 
there has been no change. While the postmaster in that report stated 
that the Bourse line was inadequate, I think that instead of the 
inadequacy of the line to transport the mail what he had in mind was 
that the line did not allow interchangeability of carriers between the 
lines. You see all the other lines are 8-inch tubes. The Bourse 
line, of course, being the infant of the development of the system, 
was only 6-inch. It has remained 6-inch. While the postmaster 
stated that the line was inadequate, as a matter of fact, we do not 
find it so in actual operation. 

Mr. Murdock. As you say now that you are getting 35 per cent 
efficiency out of it, or did on November 1, an increase of 117 per cent 
over the dispatch of mail in 1908; so it has increased despite the item 
of interchangeability ? 

Mr. Murray. Those are the figures at which I arrived, 117 per 
cent, and that is the situation. There is a slight transshipment of 
carriers that are probably empty. We endeavor to keep at each end 
carriers enough to transmit the mail as it arrives, but when the heavv 
mail arrives at one end it may be necessary in order to bring that 
up to send back some carriers. 

Mr. Murdock. If the postmaster at Philadelphia in 1908 said that 
this line was inadequate, possibly because of the fact that it is a 
6-inch tube and the others are 8-inch tubes, thus bringing in this 
item of interchangeability, and we find now that there is an enormous 
increase of 117 per cent in the efficiency of that tube, what was the 
cause of the inadequacy in the old days; was it a lack of mail? 

Mr. Murray. The idea that was probably in the postmaster’s mind 
then was not any inadequacy in the transportation of the mail, but 
the inadequacy as to the interchangeability of carriers. 

Mr. Murdock. Now, eliminating what was in the postmaster’s 
mind, let us take the fact that in 1908 the efficient use of that tube 
was 16 per cent and to-day it is 35 per cent. What gives that tube 
the use of 35 per cent efficiency to-day as against the 16 per cent 
efficiency ? 

Mr. Murray. The increase in the number of carriers transported 
is what raised the efficiency. 

Mr. Murdock. But why did they use it only 16 per cent four years 
ago as against 35 per cent to-day? Was it due to the failure of niail 
to be presented for transportation? Was it lack of efficiency in the 
tube mechanically? How do you explain the difference between the 
16 per cent and the 35 per cent? 

Mr. Murray. I explain it by the increase of the mail. 

Mr. Murdock. That is what I wanted to know. More mail was 
offered, then, this year than four years ago. 


PNEUMATIC-TUBE SYSTEM. 


121 


Mr. Murray. It evidently was offered for us to transport on the 
day I have taken for making this record, and if it had not been 
offered, of course, we would not have transmitted the carriers con¬ 
taining the mail. 

Mr. Murdock. Of course I am not looking at it purely from your 
view as offering tube service to the Government ; I am wondering 
why this tube was only used to 16 per cent of its efficiency four years 
ago and it is used 35 per cent to-day. Your answer seems to be that 
it was because mail was not offered for transmission through that 
tube in 1908 to a volume that would make its use 35 per cent. 

Mr. Murray. Unquestionably there was nothing else that would 
justify the increase in the transmission of carriers unless we would 
undertake to be so foolish as to send carriers for no purpose what¬ 
soever. Of course, that is incredible and not to be considered for a 
moment. I have taken this record as it was furnished to me by the 
operating superintendent. 

Mr. Murdock. I am not impeaching your record here as to the 
dispatch of mail on November 1, 1912, but I am trying to arrive at 
the reason for the enormous increase in the efficiency of this tube in 
the last four years, and while, you have no knowledge as to the 
amount of mail presented at the post office, I thought you would 
have some notion as to why that increase was made. 

Mr. Murray. The only conclusion forced upon one is that the mail 
increased. Every line w T e have here, even the Broad Street Station 
line, increased in the intervening four years. 

Mr. Murdock. Now, to get down to brass tacks on that point: In 
1908, then, sufficient mail was not offered on this line to really give 
a full value to the Government in the use of this tube ? 

Mr. Murray. I can not agree with that conclusion. I feel that 
the use of the tube was amply justified, not only in 1908, for the 
amount of mail it transported, but is even to a greater extent justified 
to-day. 

Mr. Murdock. And you believe now that with a further offering 
of an increased volume of business on this line that the efficiency of 
this tube will be still further increased? 

Mr. Murray. I do. At the hearing of December 3 last there was 
some comment made in regard to the Uphams Corners line. 

Mr. Murdock. Yes; I brought that matter up. 

Mr. Murray. In the report of 1908 that line showed a percentage 
of efficiency of some 2.02, and the question was asked the operating 
manager, I believe, of the American Pneumatic Service Co. whether 
he justified the installation of a tube at that point. As I recall it, 
the answer was that the installation of the tube had been recom¬ 
mended by a certain commission in the Post Office Department, but 
from my knowledge of the operation of the pneumatic-tube service 
and my observation of the transmission of mail by that service I feel 
that although the Uphams Corners Station only had a mail receipt 
of $37,000 per year it was justified in installing a pneumatic-tube 
service to that station. 

The Chairman. Why? 

Mr. Murray. Because the Uphams Corners line is in the nature 
of a residential line, and the mail receipts would be no positive crite¬ 
rion as to the amount of mail transported. Tn other words, the 


122 


PNEUMATIC-TUBE SYSTEM. 


mail would go into that station rather than originate there. Conse¬ 
quently, the postal receipts of that station would not be as great 
as if it had been a down-town post office or a post office located near 
the heart of the city of Boston, where the stamps would be pur¬ 
chased. Then I also think—although it is only my opinion—that 
mail is transported to a station like Uphams Corners in the same 
way it is to some of our stations, and then goes to points beyond. 
For instance, take the enormous volume of increase of certain of our 
lines as given in this table of comparison. Take the lines from 
Station S to Station O, which shows an increase of 283.3 per cent 
over 1908. The explanation of that was the fact that we built the 
North Philadelphia and Fairhill line, which made a tube line reach¬ 
ing from the central post office to the North Philadelphia Station, 
and allowed the mail that used to formerly be shuttled from Broad 
Street to North Philadelphia to connect with the through trains that 
did not go into Broad Street Station to take on their mail at North 
Philadelphia, which means, of course, a great diversion of mail 
that in the course of events would have gone by way of Broad Street 
Station. The construction of that line has brought out one very 
good feature of the pneumatic-tube service; and that is that a bank¬ 
ing house, or any other house that has correspondence of a very im¬ 
portant nature, was unable to get that correspondence out of the city 
if it was going to Chicago, because the last train that left Broad 
Street Station for Chicago—this is just my recollection, and I do not 
pretend to speak with absolute accuracy regarding the matter—the 
last train that left Broad Street Station for Chicago was at 4.53 
o’clock, and it arrived in Chicago on the next evening at 5 o’clock; 
whereas the train leaving North Philadelphia, the 18-hour train, 
left North Philadelphia at 5.36 and arrived in Chicago the next 
morning. 

Mr. Murdock. Does it come into Broad Street Station ? 

Mr. Murray. No; it goes by a cut-off. It does not come even to 
West Philadelphia. That enabled banking houses there and every¬ 
one else to make a considerable saving in the transportation of their 
mail going to Chicago. There is, therefore, a gain of a day in the 
transportation of this mail to a city like Chicago, allowing a day’s 
increase of interest in all banking houses. So we have given the city 
of Philadelphia an immense advantage through the construction 
of this tube. 

Mr. Murdock. I wish you would get this idea: The Government is 
asked to purchase or to consider the feasibility of purchasing tubes. 
The tubes must necessarily have this great advantage. They must ex¬ 
pedite a certain amount of the mail. Now, it is to the advantage of 
the Government to expedite just as great a volume of mail as pos¬ 
sible, and if we construct a tube anywhere or have a tube constructed 
and offered us anywhere which has not a volume of mail offered to 
transport, I can not see where the Government ought to own or 
hire that tube. It is not a matter of expediting a small amount of 
mail. The Government must have a sufficient volume of mail offered 
to expedite to make it w'orth while to have a tube. We can not put 
an expenditure of $17,000 a year per mile in a service which will 
expedite a small amount of mail, and I tried unsuccessfully to get 
this idea to you: That in 1908, on one of these tubes in Philadelphia, 
we had an efficiency service there of 16 per cent as against a present 


PNEUMATIC-TUBE SYSTEM. 


123 


record of 35 per cent. The idea I tried to convey to you was this: 
That this Government evidently had in 1908 a tube that was not 
giving it real service, because it had a tube constructed at a place 
where a sufficient volume of mail did not offer to make for an eco¬ 
nomic service. In other words, in all the testimony I have heard you 
give this afternoon you do not seem to take into consideration that 
the Government in its function in this service has a right to have a 
tube at a place where sufficient mail is offered to make the service 
economical to the Government. 

Mr. Murray. I recognized absolutely that the Government has a 
right and should of necessity receive value for the money that it 
pays for the tube service, and if the mail at a certain point is not 
sufficient to justify a tube, that tube line should not be placed in serv¬ 
ice; it is absolutely a perfect waste of money to place a tube into a 
station and to equip the station with the service; but the question 
arises, When is that point reached? Is it reached when the num¬ 
ber of carriers transmitting mail to that station is 200 per 20 hours 
operation ? 

Mr. Murdock. You and I would be in entire disagreement on that 
point, but I think it is not reached by any means when the transpor¬ 
tation between two given points anywhere makes the efficient use of 
the tube 2 per cent, as in the case of Upham Corners. 

The Chairman. Is that the only illustration? 

Mr. Murdock. The Uphham Corners case is the one where the 
efficient use of the tube is 2 per cent, and I think that is an outrage 
upon the Government. I am sure that I would not pay $17,000 a 
year per mile for that sort of service. 

Mr. Murray. The feature that you must take into consideration 
in considering the pneumatic-tube service is this: The tube service 
practically places the entire city served by the post offices and the 
stations that it connects in instantaneous communication one with 
the other. The postal stations are almost within the same roof and 
are considered only a few minutes apart. The postmaster of one 
station, a mile or 2 miles from the central office, walks to a trans¬ 
mitter and drops his money into the carrier and sends it to the central 
office, and in a few minutes he has gotten back his stamps. The mail, 
no matter where it is going or when it arrives, is placed in a carrier 
and it is on its way. If a train is ready it is there to be taken. To 
say that 200 carriers of mail transmitted into a station would not 
justify it, ignores the fact that if you take the tube service as an 
entirety you will find that the transmission of the letters in those 
tubes only costs the Government a very slight sum, some six-tenths 
of 1 mill; that the cost per carrier-mile as a unit of mail trans¬ 
ported is only one-half of 1 per cent; and your screen wagon may 
cost 38 cents. The carrier transmitting 450 letters each way from 
10 to 20 points means some $20 in revenue to the Post Office 
Department. 

Of course, it would be folly to undertake to credit that revenue to 
one branch of the postal service. It is only a limb of the tree. An¬ 
other feature you must take into consideration is this: When you 
build a tube system, and you have every station within the confines 
of the city connected up, you have a system of the very highest order 
of efficiency. Every additional station that you connect up not only 


124 


PNEUMATIC-TUBE SYSTEM. 


increases the tube service and means a new line per se, but it creates 
and aids the existing* stations. It is somewhat like building an addi¬ 
tional room to your house; you have your room and you have a better 
house. As I have shown in our North Philadelphia Station, when 
they put 2 miles additional into the tube system there they improve 
the service wonderfully. They made possible a connection that had 
been before impossible. It gave every other station connected up 
with the North Philadelphia and Fairhill Stations instantaneous 
communication, something they did not have before. Those two 
stations were highly benefited, and so were the other stations. Take 
the Boston situation, in which district the Uphams Corners Station 
is located. Of course, it is not handling a great volume of mail. I 
think, now, it is doing better than 2.2 per cent. Yet Uphams Cor¬ 
ners brings about practicaly an instantaneous communication with the 
Boston post office. It gives the people a facility that they would 
not otherwise have had. 

Mr. Murdock. I did not want to divert you from the financial 
statement you were making. You may proceed now with that. 

Mr. Murray. As I have already stated, the outstanding securities 
of the Philadelphia Co. amount to $1,696,900, made up of some 
$500,000 in common stock, $200,000 in bonds, and $996,900 in pre¬ 
ferred stock. 

The Chairman. What interest is the preferred stock paying? 

Mr. Murray. It is at present paying 6 per cent, and the bonds are 
5 per cent 20-year gold bonds. 

The Chairman. Has the preferred stock paid regular dividends? 

Mr. Murray. It has paid regular dividends since 1908. Of course, 
you must remember that since the year 1905 our pneumatic-tube 
properties in Philadelphia have been augmented some eightfold. In 
1905 we had the Bourse and Broad Street Stations, consisting of an 
aggregate mileage of about 1.27, and since 1905 w*e have expanded 
from 1.27 to 10 miles. Consequently, in the early years we did not 
pay any dividends. The common stock has been issued and out¬ 
standing since 1892, and has paid no dividends in all that time. 

The Chairman. Am I correct in my undertsanding that your com¬ 
pany made $85,000 a year? 

Mr. Murray. The earnings statement for the year ending March 
31, 1912, shows a profit on operating of $84,376.01. It is enough to 
pay the fixed charges and enough to pay our bond interest, and it 
allows a slight surplus in excess of that, but not sufficient to justify 
the payment of a dividend on the common stock. 

Mr. Murdock. Will you kindly state again what the common stock 
amounts to? 

Mr. Murray. $500,000; it was issued in 1892. 

Mr. Murdock. What is your bond issue? 

Mr. Murray. The bond issue is $200,000; and the preferred stock 
is $996,900. 

Mr. Murdock. And the bonds are 5 per cent bonds? 

Mr. Murray. Five per cent bonds. 

Mr. Murdock. And the earnings are how much ? 

Mr. Murray. The earnings as shown by a statement for the year 
ending March 31, 1912, are $84,376.01. We have a total of the out¬ 
standing securities of $1,696,900. 


PNEUMATIC-TUBE SYSTEM. 


125 


Mr. Murdock. What is your common stock quoted at now ? 

Mr. Murray. As a matter of fact, our common stock is very closely 
held. It has never been listed on any exchange, and I could not give 
you a quotation on it. 

Mr. Murdock. Was it given originally as a bonus ? 

> Mr. Murray. I will give you the situation. In 1892 the Bourse 
line was constructed under the administration of Postmaster Gen¬ 
eral Wanamaker. On page 15 of the report of the Pneumatic Tube 
Commission of 1908 a statement appears under the subhead “ 1892,” 
as follows: 

The Pneumatic Transit Co. of New Jersey is already putting down tubes in 
Philadelphia between the general post office and the East Chestnut Street postal 
station, to be completed soon after December 1, 1892. He is informed that the 
company is at an expense of $25,000, and the Post Office Department can try the 
system for one year without expense, and may then rent, purchase, or reject it 
without incurring any liability. 

We have often wondered where that statement originated. We 
have never been able to ascertain just where those figures were ob¬ 
tained. As a matter of fact, the construction of that line was approx¬ 
imately $42,000. Of course, it was the pioneer of the industry. It 
was the first large tube that had ever been successfully constructed 
in the world. The difficulties that were encountered are the diffi¬ 
culties in the overcoming of which they succeeded in creating the 
enterprise. In order to build that line it was financed by an issue of 
$300,000 of common stock. Five hundred thousand dollars was the 
capitalization, and $300,000 of it was issued for the construction of 
the Bourse line. The patents that the company then purchased were 
received in exchange for $200,000 of common stock, making up the 
total of the company’s then capitalization of $500,000 in 1893. 

Mr. Murdock. That is very important, and I wish to get it abso¬ 
lutely correct. You say there was an authorized issue of $500,000? 

Mr. Murray. $500,000 in common stock in 1892. 

Mr. Murdock. $300,000 of that was disposed of ? 

Mr. Murray. It was given to the contractors who constructed the 
Bourse line. 

Mr. Murdock. Did they in turn dispose of it ? 

Mr. Murray. They unquestionably did dispose of it. 

Mr. Murdock. That is what I want to get at. Is there any record 
or any way of finding out what they got for the $300,000 in common 
stock ? 

Mr. Murray. I have a statement here- 

Mr. Murdock. But not going into the statement, is there any way 
of finding out what the contractors got for the $300,000 of common 
stock ? 

Mr. Murray. There is no way that I know of. The gentleman to 
whom that stock was issued, I think, is dead. He was the late la¬ 
mented William J. Kelley, and the stock was issued for the construc¬ 
tion of the line. 

Mr. Murdock. What did Mr. Kelley do with this $300,000 in com¬ 
mon stock when he got it ? 

Mr. Murray. He made every effort to dispose of it. 

Mr. Murdock. He took it en bloc to some banker and said, “ How 
much will you give me for this common stock ? ” 



126 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murray. You must remember that nothing had been done like 
this before, and as the postmaster, in his report of 1892, says: 

The Post Office Department can try the system for one year without expense, 
and may then rent, purchase, or reject it without incurring any liability. 

It would have been akin to madness to have entered a bank with 
a proposition to dispose of $300,000 of common stock issued by an 
enterprise that was embarking into something that was pioneering 
absolutely. Mr. Kelley did everything he possibly could to dispose 
of that stock, and in disposing of it he was assisted by our secretary, 
so far as our secretary’s efforts were successful. 

Mr. Murdock. Do you mean by that that he sold to individuals ? 

Mr. Murray. He sold to individuals time and again, and for any 
price he could receive. In the early days of the tube construction it 
was looked upon as a gold mine; they have since changed their view 
of it in that respect. In those early days it probably brought a 
greater price than it did later. In his efforts to dispose of the stock 
I believe he encountered all manner of difficulties. 

Mr. Murdock. I am glad you cleared that matter up. 

Mr. Murray. We have nothing at all to conceal. 

Mr. Murdock. I wish you would kindly explain about the $200,- 
000 and the patents. 

Mr. Murray. I will explain that. The $200,000 of the common 
stock was issued in exchange for the patents, and that $200,000 
of common stock met a like fate. It in all probability was sold 
wherever they could find a market and where they could persuade 
an investor to invest. 

Mr. Murdock. That is, the inventor who had these various de¬ 
vices presented himself to this new company and received in ex¬ 
change for these devices $200,000 in common stock. 

Mr. Murray. $200,000 in common stock. 

Mr. Murdock. He had the same difficulty, of course, in disposing 
of that stock that Mr. Kelly did? 

Mr. Murray. If anything he had greater difficulty. 

Mr. Murdock. And there is no record anywhere which shows 
what part of the $500,000 in common stock finally reached the form 
of money. 

Mr. Murray. Of course, it would be very hard to view it in that 
light, that is that it finally reached the form of money, but the 
question arises, have we squeezed the water out of it? That is the 
thing. I have prepared a statement here in which I have endeavored 
to show- 

Mr. Murdock. I wish you would first proceed with the history 
of the matter. 

Mr. Murray. In 1897 the company then of course had expended 
this entire stock capitalization of $500,000 to purchase the Bourse 
line and the patents. The Broad Street line in 1897 was constructed 
by an issue of $200,000 of bonds. That was the only construction 
then until the year 1905. Then the lines from the central post office 
to Stations S and O were constructed; they were financed by an issue 
of preferred stock to the extent of $160,000, I think. In 1907 the 
Station C lines were constructed, and they were financed by an issue 
of $200,000 of preferred stock, and the mileage constructed was 
some 2.12. In 1908 the Southwark and D lines were constructed, 



PNEUMATIC-TUBE SYSTEM. 


127 


which also included the construction of the Reading line. Of 
course, while these were short lines, they required the same terminal 
apparatus as they would have required had they been longer lines. 
For the Southwark and D station lines there were issued $235,000 
of preferred Btock. That was in the year 1908, and in The year 1910 
in order to construct the last lines that were constructed there was 
issued $199,750 of preferred stock. 

In order to secure a device, the merits of which will be explained 
later by our engineers, we issued $100,000 of preferred stock; that 
was for the electric-tunnel rights of the city of Philadelphia and 
within a radius of 20 miles of the city of Camden. That makes up 
a total capitalization of $1,696,900. 

Mr. Murdock. Now, from your statement, the understanding I 
get is this: That your first issue was $500,000 of common stock; 
that thereafter you issued $200,000 in bonds, and thereafter $996,000 
of preferred stock. Do your bonds, amounting to $200,000, lie 
against the whole property? 

Mr. Murray. The mortgage which covers the bonds does not 
contain an after-acquired property clause, but, of course, the pay¬ 
ment of the mortgage would be incumbent upon the mortgagor. 

Mr. Murdock. What about the condition of the bondholder on 
your further issue of preferred stock? He could not be affected, 
could he, in the least by the issue of preferred stock? 

Mr. Murray. The lien on the bonds would supersede any lien 
that could be created either by common or preferred stock. The 
bondholders are the creditors. 

Mr. Murdock. I understand, but I asked that question in order 
to follow it up with another question. What was the condition of 
the common stockholder Avhen you issued the preferred stock? 

Mr. Murray. The condition, so far as we can throw any light 
upon it, was one of acquiesence. They realized they had an infant 
in swaddling clothes. Then there Avas a certain reexistence prom¬ 
ised. The industry was vitalized. You might say, of course, that 
the common stockholders would be only too glad to see further con¬ 
struction, because the operations that had been conducted through 
the years from 1892 to 1897 were not shoAving a profit, oAving to the 
fact that there Avas the same overhead expenses. There was the 
same administration, the same executive charges, such as office rent 
and telephone and taxation, etc., as though there had been a plant 
of ten times the size. In other words, when the plant is very limited 
the overhead charges are necessarily greater. 

The Chairman. Did any of the shareholders of the common stock 
purchase preferred shares? 

Mr. Murray. Yes; they did to a great extent. William J. Kelley 
was also among the purchasers of the preferred shares. I think 
William J. Kelley died some three years ago, and in his will there 
is a clause to the effect that the rest, residue, and remainder of his 
estate is to be devoted to a home for orphans, and among the securities 
of the Kelley estate are unquestionably quite a number of our securi¬ 
ties, both common and preferred stock and also the bonds. In fact, 
if my recollection serves me right, I think they hold 57 of our bonds. 

Mr. Murdock. During all these years the common-stock holder has 
not gotten anything? 

Mr. Murray. Not one penny per se. 


128 


PNEUMATIC-TUBE SYSTEM. 


The Chairman. How long a franchise have you in the city of 
Philadelphia ? 

Mr. Murray. The franchise in the city of Philadelphia, a copy of 
which I have submitted to the commission here and which has been 
incorporated in the record, was granted in 1897 and allowed construc¬ 
tion to any post office within the city limits of Philadelphia and 
allowed the laying, of course, of our tubes. 

One of the important things that I have so far neglected to men¬ 
tion is that our system is underlaid with a six-way terra cotta duct. 
In all construction undertaken since 1905 we have provided our¬ 
selves with a s-ix-way terra cotta duct, so that in case of any emer¬ 
gency we can have our own telephone and power connections from 
station to station. We are at the mercy of no one. The ordinance 
of 1907 provides that we can lay our pneumatic tubes and electric 
conduits within the confines of the city of Philadelphia and connect 
up with any postal station therein, and can also connect with the 
power house if it is located within two squares of any of our lines, 
the idea being that when prosperity was upon us we would construct 
our own power house. The only obligation that we are under with 
the city of Philadelphia, in connection with the ordinance, is that 
we file a bond of $25,000 to the city, and then, of course, we have 
the necessary charge of 5 per cent for inspection of repaving. , 

The Chairman. For how long is your franchise in Philadelphia? 

Mr. Murray. The franchise is limited as to construction to the 
year 1912, but, of course, the construction already in existence at 
that date the city could have no confiscatory powers over. 

The Chairman. Do I assume, then, that you have a perpetual 
franchise ? 

Mr. Murray. As to existing lines; yes; but we could not tomorrow 
start in and construct ad lib. in the city. They allowed us to go 
ahead for five years under the franchise of 1907. 

Now, I have given you the manner in which our securities were 
issued and for what they were issued. There is no attempt to 
evade the issue in any way, shape, or form. We are doing all in 
our power to help and assist you in arriving at a conclusion in this 
matter. 

We have compiled a statement here and that statement we have 
gleaned from various sources, but it is compiled along these general 
lines: We take the actual cash mone}^s that entered into the Bourse 
line in 1892 and we find that it is $42,000. We have allowed for 
the year 1893 unpaid interest on that sum, $2,520. I do not want to 
unnecessarily take up the commission’s time in rehashing this, as 
I intend filing it with you, but I want you to grasp the purpose and 
how we arrive at these figures. 

Mr. Murdock. I think it would be a good plan for you to proceed 
with this matter item by item. What rate of interest do you allow 
on that money? 

Mr. Murray. Six per cent. To-day when industrials pay 7 
per cent, and there is a dearth in the market, 6 per cent is not an 
exorbitant rate for us to allow; but we have started with the amount 
actually invested in the Bourse line in the year 1892 as being $42,000. 
We have compiled this statement under a tabulation of each year. 
In the year 1893 there is unpaid interest, $2,520. We have* also 
allowed a sum for unpaid officers, $12,000. We have also estimated 


PNEUMATIC-TUBE SYSTEM. 


129 


loss in operation during the year 1893 as $12,000. Now there is 
this justification for our estimate of unpaid officers at $12,000. 
While the corporation was only an infant at that time, it is in the 
early days of a corporation that the actual work must be done. The 
energy, the initiative and all that goes to create an enterprise has 
got to be considered, and we have estimated $12,000 under the item 
of unpaid officers. This is ignoring the salaries to our directors. 

The Chairman. Did I understand you to say salaries of your 
directors ? 

Mr. Murray. I say it is ignoring anything in the way of salaries 
or fees to our directors. In other words, we are counting $12,000 
in the year 1893 as a proper remuneration to our officers. They did 
not receive it, however. 

Mr. Stewart. Is that itemized? 

Mr. Mi trray. No ; it is not itemized any more than we would ap¬ 
portion it among the president, secretary, and treasurer in probably 
equal sums. You can apportion it as you wish. This enterprise was 
created; men had to do it. They had to have executive heads to 
carry on the corporation. It is true they acted for nothing. They 
received nothing. It is also true they held the common stock. This 
is how I expect to show that the water was squeezed out completely 
and absolutely. 

Mr. Stewart. You say it is not itemized, but you must have had 
some way of arriving at it. 

Mr. Murray. A justifiable sum would be $4,000 a man for those 
three officials. That ignores the directors. 

The Chairman. I did not know that directors received any salary. 

Mr. Murray. The directors, especially in a struggling industry, 
do devote some time and attention to the business. Of course, we 
made no attempt to compensate the directors, because the directors, 
at least two of them, were officers of the company; but there is no 
estimate in arriving at this conclusion of anything for the directors. 
In other ivords, there are no directors in the calculation whatsoever. 

Mr. Murdock. The president and the secretary and the treasurer; 
are those the three officers? 

Mr. Murray. Yes; the president, the secretary, and the treasurer. 

Mr. Stewart. I assume that those items are carried in the operat¬ 
ing expenses now somewhere. 

Mr. Murray. As a matter of fact they are not carried in the 
operating expenses at the present time. We do not to-day pay a 
salary equivalent to $4,000 to any officer of the company. Two 
officers act without any remuneration, and one receives less than 
$4,000. So that to check me up, as it were, by looking at the opera¬ 
tion for the last fiscal year it would be impossible. What I am at¬ 
tempting to do is to justify the securities that have been issued for 
these properties and to show that they are of value, and we are 
arriving at it by this tabulated statement. 

The first item considered in the year 1893 was $2,520 for unpaid 
interest; and for unpaid officers, $i2,000; loss in operation $12,000. 
Those three sums when added to our original capital with which 
we began business in 1893 make a total of $68,520. That was what 
we started with in the year 1894. 

Mr. Stewart. What was the third item you referred to? 


7S419—13 


9 



130 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murray. Loss in operation. That is estimated. 

Mr. Stewart. Plow is that arrived at? 

Mr. Murray. You might say that we have arrived at it at the best 
of our ability. We do not pretend to speak by chapter and verse and 
to lay a finger on every dollar we lost. 

Mr. Murdock. Why not $10,000 instead of $12,000 ? How do you 
arrive at the $12,000? 

Mr. Murray. I will have to refer you to Mr. Stuart, our engineer, 
for information on that subject. I have only been connected with the 
company a matter of four years and a half. I am not an engineer, 
but am an attorney at law. 

Mr. Stewart. You mean Mr. Kenneth E. Stuart, the engineer, do 
you not? 

Mr. Murray. Yes, sir; our engineer. The figures for the loss in 
operation were compiled by Mr. Stuart. If you ask him I presume 
he can give you positive information as to how he arrived at those 
figures. Later on we can show it to you with absolute ability to 
show the reason for it. 

In the year 1894 the unpaid interest on our capital of $68,520, 
made up as I stated, would be $4,111; unpaid officers, $12,000, the 
same sum as for the previous year; alterations in the year 1894, 
$10,000. In that year the Bourse Building was built, and the East 
Chestnut Street postal station was moved around to the Bourse 
Building, so that it was necessary to take our plant out of the East 
Chestnut Street postal station and move the terminal to the Bourse 
station. We have estimated that $10,000 as a proper and justifiable 
capital charge. The estimate of the loss in operation during that 
year is $8,000. These items added to the sum of $68,520 make a 
total of $102,631. 

In the year 1895 we calculated unpaid interest on the $102,631 as 
$6,158; unpaid officers, $12,000; loss in operation (estimated), $8,500, 
bringing our capital invested in the business at the beginning of the 
year 1896 to $129,289. 

In the year 1896 the unpaid interest was $7,757; unpaid officers, 
$12,000; and the loss in operation $8,500, making a total at the be¬ 
ginning of the year 1897 of $157,546. 

In the year 1897 the interest charge was $9,453; unpaid officers, 
$12,000; and loss in operation, $8,500, making a total of $187,499 as 
our capital at the beginning of the year 1898. 

The unpaid interest for the year 1898 is $11,250; the item for 
new construction, as represented by the Broad Street line, is esti¬ 
mated at $60,000, actual cash invested; and the item for unpaid 
officers in the same year $10,000; loss in operation, $5,000; or our 
capital invested at the beginning of the year 1899 was $273,749. 

The interest on our invested capital in the year 1899 was $16,425. 
In that year we paid interest at 5 per cent on the $200,000 of bonds, 
which, of course, then left to be charged against interest the sum of 
$6,425. The item for unpaid officers was $12,000 and the loss in 
operation $5,000, which made our capital at the beginning of the 
year 1900 $297,174. 

In the year 1900 the interest charge on our capital was $17,830. 
We paid as interest on bonds $10,000, leaving to be charged as un¬ 
paid interest $7,830, unpaid officers, $12,000$ and loss in operation 
$5,000, making our capital at the beginning of the year 1901 $322,004. 


PNEUMATIC-TUBE SYSTEM. 


131 


In the year 1901 the interest on the capital invested was $19,320; 
paid on bonds, $10,000, leaving a charge of $9,320 for unpaid inter¬ 
est; unpaid officers, $12,000; loss in operation $5,000, leaving our 
capital at the beginning of the year 1902 $348,324, on which interest 
was charged at $20,000. During that year the tubes were shut down. 
No appropriation was made. The Government at that time desired 
to reverse its view on the feasibility of the tubes; consequently an ap¬ 
propriation was not made. Whether it was through some hostility 
or not we are unable to say. We know that there was no appropria¬ 
tion made, and the lines that year performed no service. 

At the beginning of the year 1903 the interest charge was $22,873; 
paid on bonds, $10,000, leaving to be charged against interest $12,873; 
unpaid officers, $12,000; and loss in operation $5,000, making a total 
of $411,096 as our capital at the beginning of the year 1904. 

In the year 1904 the interest charge was $24,666; paid on bonds, 
$10,000, leaving charged against unpaid interest $14,666; unpaid 
officers, $12,000; loss in operation, $5,000; and alterations at Broad 
Street Station $2,000, making a total capital at the beginning of the 
year 1905 of $444,762. 

In the year 1905 the interest charge was $26,686; paid on bonds, 
$10,000, leaving charged as unpaid interest $16,686; unpaid officers, 
$12,000; new construction, central post office to S and O Stations, 
$175,700; loss in operation $5,000, leaving our capital at the begin¬ 
ning of the year 1906 $654,148. 

Mr. Murdock. Now, in that year you constructed a new line. 

Mr. Murray. Yes, sir. 

Mr. Murdock. Do you remember the amount of preferred stock 
issued against that line? 

Mr. Murray. The preferred stock, I think, was either $160,000 
or $175,000. 

Mr. Murdock. How much did the line cost? 

Mr. Murray. We have the cost here as $175,000. That line was 
2.42 miles in length. It is the longest line that we ever constructed. 

Mr. Murdock. That is, you spent more money in that line than 
you issued in preferred stock? 

The Chairman. No, Mr. Murdock, he did not say that. He said 
$160,000 or $175,000. From his latter statement it would appear to 
be $175,700, which would probably be the cost of the route. 

Mr. Murray. I can refresh my memory from the balance sheet 
[referring to the balance sheet]. In the year 1905 we issued $160,000 
of preferred stock to construct the Station S line. I recall now the 
situation fully. The Station S line cost $175,000, some $15,000 in 
excess of the preferred stock, and the contractor that took the con¬ 
tract I think lost money on the excavation. To show you an ex¬ 
ample of the difficulties that we encounter in constructing tube lines, 
especially in the old portions of the city, I will say that in building 
the lines S and O it took seven weeks to cross one street. 

The Chairman. Where did the balance of the money come from? 
Did you sell the preferred shares at more than par, or did you draw 
on your capital? 

Mr. Murray. The preferred shares were issued for the construc¬ 
tion of that line, and it was up to the contractor to make good that 
liability. 


132 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murdock. He lost that $15,700? 

Mr. Murray. Yes, sir. 

The Chairman. And more, if the stock did not bring as much as 
$160,000. 

Mr. Murray. It was up to him to secure the amount. If he did 
not secure in excess of par for it, he lost. 

Mr. Murdock. Then, as a matter of fact, the construction of that 
line cost you only $160,000? 

Mr. Murray. I have told you that the securities were $160,000, 
and now I am telling you that the actual money put into that line 
was $175,700, and that the contractor lost. 

Mr. Murdock. But it was not that cost to you ? 

Mr. Murray. It w T as not that cost to us, but I am showing you 
the process whereby the equities are in the property and the water 
is squeezed out. The property is worth $175,700. This line is 2.41 
miles in length, and on the normal basis of pneumatic-tube construc¬ 
tion it will run over $200,000. I am placing this in here as the exact 
figures. 

The Chairman. The real test will come when you figure out what 
it will cost to reproduce the work. 

Mr. Murray. But the idea I am trying to present is that there is 
equity in our securities. I have made a great effort to make myself 
plain. I am not saying that these lines actually cost the dollars 
that the stock was issued for, but I am endeavoring to show that 
our securities have a par value at least in them. 

In the year 1906 the interest charge was $39,249; paid on bonds 
and stock, $18,000, making the unpaid interest $21,249; unpaid 
officers, $12,000, or the capital at the beginning of the vear 1907, 
$687,397. 

For the year 1907 the interest was $41,244; paid on bonds and 
stock, $18,000, making the unpaid interest $23,244; unpaid officers, 
$12,000; new construction, Broad Street Station to Stations J and 
C, $154,030; making a total capital charge at the beginning of the 
year 1908 of $876,671. 

Mr. Murdock. What w r as the preferred stock on that new construc¬ 
tion; do you remember? 

Mr. Murray. Do you mean what preferred stock was issued to 
construct the Southwark and D and the Reading lines? 

Mr. Murdock. Yes. 

Mr. Murray. $235,000, and we approximate it as costing $170,000. 
One of those lines is 0.28 mile long. Of course, that would require 
the same terminal apparatus as in other cases. 

Mr. Murdock. Was the same process followed in that year as in 
the former years of giving the preferred stock to the contractor? 

Mr. Murray. Identically the same. 

Mr. Murdock. And he got the stock for what? 

Mr. Murray. He got the stock for reproducing the tangible prop¬ 
erty there. He had the burden and the onus of marketing the se¬ 
curities, and the man who undertakes a contract of that descrip¬ 
tion requires some sort of daring. 

Mr. Murdock. He got his 6 per cent, did he not? 

Mr. Murray. On the security; yes. 

Mr. Murdock. And he bought his stock below par? 

Mr. Murray. He secured his stock for constructing the line. 


PNEUMATIC-TUBE SYSTEM. 


133 


Mr. Murdock. But if the line cost him $170,000- 

Mr. Murray. Unquestionably he bought it below par, if he se¬ 
cured, as he did, $235,000 for constructing the line, and lie constructed 
it for $170,000. 

Mr. Murdock. And as against the experience of the former con¬ 
tractor, this man got a job that cost only $170,000 and received 6 per 
cent on his investment. Did he not get a pretty good thing out of it? 

Mr. Murray. He was fortunate, if you consider that he could go 
and market this $235,000 of 6 per cent stock as easily as you can 
enumerate the par value. 

The Chairman. The credit of the shares, I assume, was not so 
good. 

Mr. Murray. The credit of the shares is met with this proposi¬ 
tion: While they are not liable to be confiscated, we have but one 
customer, and that one customer may arbitrarily refuse for some 
reason to continue the service. 

Mr. Murdock. Have you any record anywhere which shows that 
this contractor did sell his preferred stock and what he sold it for? 

Mr. Murray. No; we have not. I would not be surprised to know 
that the contractor is holding that stock. The Kelley estate, as I 
have stated, is holding some of the bonds that William J. Kelley 
secured in connection with the early construction. 

Mr. Stewart. I understand you are giving us cash figures as to 
the actual cost of the construction which the contractor had to pay 
out. You say it cost him so much money, but you turned over this 
stock to him. 

Mr. Murray. We turned over $235,000 of preferred stock to the 
contractor for the Southwark, D, and the Reading lines, and we 
estimated that it cost the contractor the sum of $170,000 to construct 
that property. 

Mr. Murdock. Now, did it cost him that? 

Mr. Murray. We estimated that amount. Mr. Stuart, the engi¬ 
neer, I think, was wmrking on that line, but we have here the con¬ 
tract that immediately preceded that itemized for the Batcheller 
Pneumatic Tube Co.'s books. 

Mr. Murdock. What was his bill; do you know? 

Mr. Murray. They received $200,000 preferred stock. The total 
cost of construction was estimated at $166,462.47. 

Mr. Stewart. How do you arrive at that amount? 

Mr. Murray. The figures whereby we arrive at that amount I have 
set out here with the most minute detail. The cost of the construc¬ 
tion and the installation of the J and C lines are shown. They were 
constructed in 1907. The details of that construction to the last 
penny are set out here. I will leave a copy of the statement showing 
the cost of construction of these lines with the committee. 

The Chairman. That was a very expensive way of doing business. 

Mr. Murray. To a certain extent it is unquestionably misleading. 
At the present time under the public utilities act no public-service 
corporation can issue securities unless the value is there, but in a 
proposition of this kind you must consider that it was an enter¬ 
prise just starting, a pioneer. It is the beginning of something. Be* 
fore this company started there were no large tubes in America. The 
millions of letters handled went by screen wagon. In the 1908 report 
of the Pneumatic Tube Commission they were estimated as 18,000,000 



134 


PNEUMATIC-TUBE SYSTEM. 


letters per day handled by the tubes. This company has constructed 
something, and it is on this that we have tried to justify our securi¬ 
ties, and we feel that we are in a large measure successful. 

The capital with which we began business in the year 1908 was 
$870,071. In the year 1908 the interest was $52,000; paid on bonds 
and stock, $31,750, making the unpaid interest $20,850; unpaid offi¬ 
cers, $12,000; alterations to Broad Street Station, $1,000; and new 
construction, central post office, Southwark, D and central post 
office, Reading, $170,000; making a total capital at the beginning of 
the }^ear 1909 of $1,080,521. 

In the year 1909 the interest was $64,831; paid on bonds and stock. 
$41,851, making the unpaid interest $22,980; unpaid officers, $12,000; 
new construction, Fairhill and North Philadelphia, $117,000; mak¬ 
ing a total of $1,232,501. 

In the year 1910 the interest was $73,950; paid on bonds and stock, 
$63,814, making the unpaid interest $10,136; unpaid officers, $12,000: 
alterations at Broad Street Station, $3,770; making a total of 
$1,258,407. 

In the year 1911 the interest was $75,504; paid on bonds and stock, 
$63,814; making the unpaid interest $11,690; unpaid officers, $12,000; 
alterations at Fairmount Avenue, $5,000; making a total of $1,287,097. 

In the year 1912 the interest was $77,226; paid on bonds and stock, 
$63814; making the unpaid interest $13,412; unpaid officers, $12,000; 
making a total of $1,312,509 as our capital placed absolutely in the 
business up to the beginning of the year 1913. 

The Chairman. You say the officers were not paid that year? 

Mr. Murray. The officers have never received any pay, excepting 
one. 

The Chairman. That is the treasurer? 

Mr. Murray. Yes; and the other officers receive no pay whatsoever. 

The Chairman. What are the officers, a vice president and presi¬ 
dent? 

Mr. Murray. The president and the secretary. The secretary has 
been associated with the company since 1892. The trials he suffered 
in endeavoring to find a market for the securities would stagger the 
imagination. 

Mr. Murdock. The amount of your outstanding securities, then, is 
$1,696,900? 

Mr. Murray. Yes; $1,696,900. 

Mr. Murdock. And your present calculations, figured up as you 
have just shown us in the recitation of these values, is $1,312,509? Is 
that correct? 

Mr. Murray. Yes, sir; absolutely. 

Mr. Murdock. But the difference between your paper value and 
what we may designate here as your actual value is $447,000. Is that 
correct ? 

Mr. Murray. It is even more than that; some $450,000. 

Mr. Murdock. Is it fair then to say that your issue of $500,000 
was all water? 

Mr. Murray. It would be very unfair to arrive at the conclusion 
that the $500,000 was all water, because, as I have explained to you, 
the first $300,000 out of that $500,000 represented actual dollars used, 
and I have traced, or have endeavored to trace, the equities that we 
have placed in the property. 


PNEUMATIC-TUBE SYSTEM. 


135 


]\Ir. Murdock. If you can, I wish you would show me the fallacy 
of my statement that there is an actual difference between your paper 
value and your physical value as you have shown it here of nearly 
$500,000. Why does it not follow that your $500,000 of common 
stock issue was water? 

Mr. Murray. That is an arbitrary conclusion, because you are 
taking* the entire sum between the actual dollars that we have traced 
into the business and our total capitalization. Now, the question 
arises, Were there any values not included in this sum which I have 
just read to you ? 

Mr. Murdock. I thought you were pretty liberal with yourself 
there. It may be that you were not. I thought you had included 
in your statement that you gave us all the values that you claim for 
this property. 

Mr. Murray. If you undertake to market a security—take to-day 
a public-service corporation. The courts set their faces like flint 
against confiscation of it. You can not confiscate a public-service 
corporation. It is impossible. While the actual, physical, tangible 
property of ours can not be confiscated, the fact remains that we have 
only one customer. It puts us in such a position that when we go to 
borrow money we are met with a statement like this: “Well, it is 
true your earnings are fairly representative, but where is the prop¬ 
erty ? ” Mr. Hayden, in his testimony before the commission, stated 
that in the days of the pioneers they were willing to take risks, but 
you can not ask the banker to-day to take risks. He wants to know 
first if the principal is absolutely secure, and then comes in a consid¬ 
eration of the return. 

Mr. Murdock. Do you claim that the last figures given by you in 
your statement—$1,312,509—is the value of your property now ? 

Mr. Murray. No; we do not. We consider that there are equities 
in addition to that that we have not enumerated here. The only 
equities that I have considered are the interest charges of the actual 
dollars that have entered into this, and $12,000 a year for the officers. 
In other words, it shows what is known in the science of the present 
time as the intangible or invisible value—the value that is not in the 
physical property. When a company goes into the hands of a re¬ 
ceiver and a reorganization is effected and the reorganization com¬ 
mittee applied to the public-service commission of a State like New 
York for approval of its securities, the question comes up before the 
commission as to what amount shall be approved and whether or not 
some one shall be sent over that physical property to lay a hand 
on every dollar that has gone into it or whether the physical property 
shall be taken at a certain valuation and an allowance made for what 
is called the intangible value, the value represented by franchises. 
Although they may not give us a cent, they have a value, because 
they are absolutely necessary to operate, whatever the public utility 
may be. It is true that in the early construction of the property the 
securities may have been issued in a way which would not be justified 
to-day, but they have been issued to secure the necessary legal prop¬ 
erty of the corporation. 

Mr. Murdock. What do you give in the way of the items like good 
will and other intangible matters to make up the difference spoken 
of here? 



136 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murray. We have endeavored to do everything in our power 
to gain the good will of our only customer. It is very difficult to 
undertake to charge that customer for the good will, but there are 
several things that have entered into it which I have not taken into 
consideration. For instance, the directors’ time and the expense and 
trouble they have been put to in the 20 years. The equities that 
enter into our property are in addition to those I have enumerated, 
such as preliminary expenses of incorporation, the expense of main¬ 
taining an office and one thing and another. 

Mr. Murdock. You have paid for that out of the running ex¬ 
penses, have you not? 

Mr. Murray. We have charged that to operation where it was 
permissible, but there are certain things you Could not charge in 
that way. 

The Chairman. You have not made any proposition to the Gov¬ 
ernment, have you, for a sale? 

Mr. Murray". The only proposition that I am aware of is that in 
1908 we suggested to the Government $1,390,000 as a selling price. 

I should like to read to the commission a portion of a decision of 
the Court of Appeals of the State of New York regarding the rea¬ 
sonable profit of promoting the Third Avenue reorganization, Floy— 

estimating the profits at from 5 to 10 per cent. In dealing with public-service 
corporations and reorganizations the courts have always recognized that when 
investments have been made in good faith for the purpose of serving public 
convenience and supplying public facilities the investor should be accorded 
liberal treatment, protection against confiscation, and an opportunity to recog¬ 
nize the truth, elsewhere so often disregarded, that if private investors had 
not furnished the capital for railroads and other utilities and conveniences the 
funds would have had to be raised by taxation, frequently at times when and 
in communities where the burden could not have been conveniently borne. 

Here is an enterprise existing to-day which the Government would 
never in all Christendom have undertaken to originate. It re¬ 
mained for private enterprise to originate it; men who are willing 
to take a risk; men with business sagacity who were not afraid to 
invest money provided there was going to be a return upon it. 

The difference between a live plant and a dead one is real value and is inde¬ 
pendent of any franchise to go on or any mere good will as between such plant 
and its customers. * * * That there is a difference between even the cost 

of duplication, less depreciation, of the elements making up the plant and the 
commercial value of the business as a going concern is evident. 

The street-car system may have laid its rail and built its power plant and 
have bought its cars, but it does not have the value that it afterwards will have 
when its business has been adjusted and the people have adjusted their busi¬ 
ness and their conveniences to work in harmony with the system thus estab¬ 
lished. It is not material whether we call it good will or the value of a going 
concern, but there is the intangible value there, and the owner has the right to 
have it determined on such increased valuation. 

The existing evil that designing individuals had frequently procured as a free 
gift or for a merely nominal payment, a valuable public franchise, and had im¬ 
mediately sold such franchise to a public-service corporation, organized by 
themselves for the purpose of taking it over, for a large sum in stock or bonds 
of the corporation, representing an inflated valuation of the franchise as such. 

The franchises of such a corporation constitute necessarily an element of the 
value of every article of the property, suitable for its corporate purposes, which 
the corporation possesses; they are inseparable from the use of the corporeal 
property, and it is impossible fairly to value such a property as a going concern 
without considering franchises which make its use possible or profitable. The 
connection or association is practically indissoluble. Of course, apart from 
the franchises, the value of the tangible property is vastly less than the cost, 
for without the franchises to operate the property would be a nuisance and 
practically valueless. 


PNEUMATIC-TUBE SYSTEM. 


137 


The Chairman. The owners of the companies would not object, 
would they, if this commission had an engineer and on auditor ap¬ 
pointed to make an investigation? 

Mr. Murray. We certainly would consider it and let you know 
our decision. 

The Chairman. Would you extend every opportunity to them? 

Mr. Murray. Every possible courtesy. We desire to have the 
commission come to Philadelphia. We will endeavor to demonstrate 
to the commission that the capacity of a pneumatic tube is in excess 
of 28,000 for the period of 20 hours. We will extend every courtesy 
in the way of giving access to our papers, documents, etc. 

Mr. Murdock. It seems that your paper value is some $500,000 
more than the figures you gave here this afternoon. The difference 
of $500,000 is, as I understand it, made up by the possession of the 
company of certain intangible elements of property, such as good will 
and franchises, unpaid salaries to directors, office rent, etc. Can you 
state any other items? 

Mr. Murray. Also patent charges. For instance, there were issued 
$200,000 in connection with the acquisition of the patents. 

Mr. Murdock. I think that it is legitimate to include that in the 
list. 

The Chairman. Was that $200,000 issued in stock ? 

Mr. Murray. Yes, sir; it was part of the original common stock. 

Mr. Stewart. And that amount is not included in the amounts 
you read here item by item ? 

Mr. Murray. No; that is not included in the cost of the physical, 
tangible property which I have enumerated. As I mentioned in my 
earlier testimony, we have undertaken the acquisition of the electric- 
tunnel patent by an issue of $100,000 of preferred stock. 

The Chairman. Am I correct in my understanding that your 
stockholders desire the Federal Government to purchase your com¬ 
pany ? 

Mr. Murray. We would certainly desire very much to arrive at 
proper terms with the Federal Government. We, however, would 
be perfectly willing to accept a 50-vear contract, or we would be will¬ 
ing to accept a higher rental, which would allow of an amortization 
of the principal sum. 

The Chairman. If the question of sale were being considered, on 
what basis would you enter into it? 

Mr. Murray. The proposition which has been before the commis¬ 
sion—I do not recall now just who suggested it—of 6 per cent on the 
earning capacity. That would, in my judgment, be fair, but I am 
only speaking for myself. Such a proposition would have to go 
before the board of directors and stockholders. Then there has 
been another proposition mentioned, that in connection with the rule 
of the Interstate Commerce Commission—that is, the original cost 
of construction, the going concern, the reproduction value. I think 
that would work out in our plant in such a way that it would be 
almost equal to the 6 per cent on the earning capacity. 

Mr. Stewart. In speaking of the price, does that include a trans¬ 
fer to the Government of your rights under these patents for the elec¬ 
tric tunnel that you spoke of? 

Mr. Murray. Yes; we would include the electric-tunnel rights in 
the price. Of course, as I say, the price proposed to the commission 



138 


PNEUMATIC-TUBE SYSTEM. 


seems to me to be a fair one. I can not, however, give a positive ex¬ 
pression on that point at this time. 

Mr. Stewart. What is that price? You have not stated definitely. 

Mr. Murray. Our earnings being $85,000, capitalized at 6 per cent 
would run in the neighborhood of $1,416,666, and I think our earn¬ 
ings are in excess of that at the present time. We are doing better 
now, and we would expect such a price as would enable us to retire 
our outstanding securities at par at least. 

Mr. Stewart. But there is no item here in these expenses for in¬ 
terest on bonds and payments on your preferred stock. 

Mr. Murray. No. 

Mr. Stewart. Should they not be included there? The point that 
I want to bring out is with reference to your statement of the profits 
upon which it is suggested to calculate an interest of 6 per cent. 
Those profits are given here as $84,000, but the items of expenses do 
not seem to include any items of interest on the bonds. 

Mr. Murray. Here you will notice are the bonds, with the interest 
deducted [referring to the tabulated statement]. 

The Chairman. The $85,000 does not include the salaries? 

Mr. Murray. No, sir. 

Mr. Murdock. You allow in your statement 6 per cent on the 
$42,000. That is correct, is it not ? 

Mr. Murray. That is correct. 

Mr. Murdock. Would not 6 per cent a year on $42,000 for 20 years 
compounded amortize the $42,000, and more ? 

Mr. Murray. You take $42,000 put into the concern 20 years ago, 
it is entitled to a return therefrom of 6 per cent. 

Mr. Murdock. Yes; but in your interest charge there you com¬ 
pound. 

Mr. Murray. The investor has never gotten anything back on it. 

Mr. Murdock. But in your computation there in 20 years you 
compound that 6 per cent on your $42,000. 

Mr. Murray. The investor receiving no return, I think we are 
perfectly justified. 

Mr. Murdock. We are figuring on the basis that we are going to 
buy the line from you. One of the processes by which you arrive 
at the value is that we shall amortize that value. Have we not done 
more than that in the way you figure your interest ? 

Mr. Murray. Do you think it is fair, Mr. Murdock, to isolate that 
one line ? 

Mr. Murdock. But I was merely trying to arrive at the methods 
by which you build your table. 

Mr. Murray. The method that we proceeded on is this: The actual 
money put into the business, interest thereon, salaries that have been 
unpaid, aggregating an equity, and that added each year as there 
was no return on it; and then adding the loss in operation. The 
court of appeals in the Third Avenue reorganization did not take 
into consideration the reproductive value alone, because the physical 
reproductive value of a plant is not the mere item to be considered. 
The going concern must be taken into consideration. You must take 
into consideration that any concern to reproduce that must meet the 
charges which all companies have had to meet. 


PNEUMATIC-TUBE SYSTEM. 


139 


I lie Chairman. It is not only the question of what the property 

can be reproduced for, but it is also a matter of the franchises and 
all items. 

Mr. Murray. We candidly admit that the approximate cost of 
construction to-day is in the neighborhood of $80,000 per mile. 

The Chairman. And you have 10 miles: that is $800,000. 

Mr. Murray. $800,000; yes. 

Mr. Stewart. You spoke awhile ago of quoting a price in 1908 of 

$1,390,000, but at that time the entire line was not constructed, Mr. 
Murray. 

Mr. Murray. No; there has been since constructed the Reading, 
the Fairhill, and North Philadelphia lines. 

Mr. Stewart. I thought that point ought to be cleared upon the 
record, because somebody asked you for a price, and you named that 
as the price which you would give. 

The Chairman. I do not think these gentlemen are now coming 
to us with any figures at all as. to what they want to sell to the Gov¬ 
ernment for. They are appearing here and present the whole propo¬ 
sition for us to investigate. I do not think anyone who has ap¬ 
peared here previous to this has made any clearer statements than 
Mr. Murray. 

The tabulated statements discussed by Mr. Murray are as follows: 

Statement showing money invested year by year in the Philadelphia pneumatic- 
tube system, including construction costs, unpaid interest, operating losses, 
station alterations, etc. 


Year 1892 : 

New construction (line central post office to Bourse)_ $42,000 

Year 1893: 

Unpaid interest- 2, 520 

Unpaid officers- 12, 000 

Loss in operation (estimated)- 12,000 


Total_ G8, 520 


Year 1894: 

Unpaid interest_ 4,111 

Unpaid officers- 12, 000 

Alterations (estimated)- 10,000 

Loss in operation- 8, 000 


Total_ 102, 631 


Year 1895: 

Unpaid interest--- 6,158 

Unpaid officers- 12, 000 

Loss in operation (estimated)- 8,500 


Total_ 129,289 


Year 1896: 

Unpaid interest — 
Unpaid officers— 
Loss in operation 


157, 546 


7, 757 
12, 000 

8, 500 


Total 
































140 PNEUMATIC-TUBE SYSTEM. 

Year 1S97: 

Unpaid interest_ $9, 453 

Unpaid officers_ 12, 000 

Loss in operation- 8, 500 

\ . 


Total_ 187, 499 


Year 1898: 

Unpaid interest_ 11,250 

New construction (line central post office to Broad Street Station) 60, 000 

Unpaid officers_ 10, 000 

Loss in operation- 5, 000 


Total_ 273, 749 


Year 1899: 

Interest_ $16, 425 

Paid on bonds_ 10, 000 


Unpaid interest- 6,425 

Unpaid officers- 12, 000 

Loss in operation-- 5, 000 


Total_ 297,174 


Year 1900: 

Interest- $17, 830 

Paid on bonds- 10, 000 


Unpaid interest_ 7,830 

Unpaid officers- 12, 000 

Loss in operation_ 5, 000 


Total_ 322, 004 


Lear 1901: 

Interest_$19, 320 

Paid on bonds- 10, 000 


Unpaid interest- 9, 320 

Unpaid officers- 12, 000 

Loss in operation_ 5, 000 


Total--- 348, 324 


Year 1902: 

Unpaid interest (tubes shut down)_ 20, 899 

Unpaid officers- 12, 000 


Total- 381, 223 


Year 1903: 

Interest-$22, 873 

Paid on bonds- 10, 000 


Unpaid interest- 12,873 

Unpaid officers- 12, 000 

Loss in operation- 5, 000 


Total- 411, 096 


Year 1904: 

Interest-$24, 666 

Paid on bonds- 10, 000 


Unpaid interest 
Unpaid officers- 


14, 666 
12, 000 




































































PNEUMATIC-TUBE SYSTEM. 


141 


Year 1904—Continued : 

Loss in operation_ 000 

Alterations at Broad Street Station_ 2 , 000 


Total- 444, 762 


Year 1905: 

Interest-$26,686 

Paid on bonds- 10,000 


Unpaid interest_ 16, 686 

Unpaid officers- 12,000 

New construction (central post office, S-O)_ 175,700 

Loss in operation_ 5, 000 


Total- 654,148 


Year 1906: 

Interest_$39, 249 

Paid on bonds and stocks_ 18, 000 


Unpaid interest_ 21, 249 

Unpaid officers- 12,000 


Total__ 687, 397 


Year 1907: 

Interest__$41, 244 

Paid on bonds and stock_ 18, 000 


Unpaid interest_ 23, 244 

Unpaid officers_ 12, 000 

New construction (Broad Street, J-C)___ 154,030 


876, 671 


Year 1908: 

Interest-$52, 600 

Paid on bonds and stock- 31, 750 


Unpaid interest_ 20, 850 

Unpaid officers_ 12, 000 

Alterations (Broad Street Station)_ 1,000 

New construction (Central post office, Southwark, D, central post 
office, Reading)- 170,000 


1, 080, 521 


Year 1909: 

Interest-$64, 831 

Paid on bonds and stock_ 41, 851 


Unpaid interest- 22, 980 

Unpaid officers- 12, 000 

New construction (O, Fairhill, North Philadelphia)- 117,000 


1, 232, 501 


Year 1910: 

Interest_$13, 950 

Paid on bonds and stock- 63, 814 


10,136 
12, 000 
3, 770 


Unpaid interest- 

Unpaid officers- 

Alterations (Broad Street) 


1, 258, 407 

































































142 


PNEUMATIC-TUBE SYSTEM 


Year 1911: 

Interest_$75, 504 

Paid on bonds and stock_ 63, 814 


Unpaid interest_ $11,690 

Unpaid officers_ 12, 000 

Alterations (Fairmount Avenue)_ 5,000 


1, 287, 097 


Year 1912: 

Interest_$77,226 

Paid on bonds and stock_ 63, 814 


13, 412 
12, 000 


1,312, 509 


$3, 044. 26 


38,150. 02 


41,194. 28 

M. B. Riffo (old balance originating prior to June, 1908)_ 14,433. 27 


Plant, equipment, etc.: 

Tube system— 

6 miles in Philadelphia_ 860, 000. 00 

Southwark and Station D_ 235, 000. 00 

Reading Terminal_ 20, 000. 00 

Fairhill and North Philadelphia_ 199, 750. 00 

Fairmount Avenue Station, reconstruction 4, 880. 35 


1, 319, 630. 35 

3, 411. 70 
3,194. 28 

14, 933. 65 
750. 96 

4, 9S3.15 


1, 346, 904. 09 

Patent rights_ 200, 000. 00 


Exploitation account, representing operating losses 

and demonstrating expenses up to Jan. 1, 190S_ 62, 515. 80 

- 1, 609, 419. 89 


1, 665, 047. 44 


Tools and shop equipment 

Furniture and fixtures_ 

New carriers_ 

Line equipment_ 

Power regulators_ 


Pneumatic Transit Co. balance sheet , March 31, 1912. 

ASSETS. 

Cash in bank and on hand_ 

Accounts receivable: 

United States Post Office Department, March 


rental_ $14,166. 52 

Internationl Pneumatic Tubs Co_ 7, 764. 25 

Batcheller Pneumatic Tube Co_ 15, 628. 27 

Miscellaneous_ 590. 98 


Unpaid interest 
Unpaid officers- 


LTABILITIES. 


Accounts payable: 

Philadelphia Electric Co_ $13, 72S. 72 

Pennsylvania States taxes for 1907, 190S, 1909, 

1910, and 1911_ 3.537.40 

New Jersey State tax, 1911_ 1,396.90 

Frank Rittenhouse_ 1,497.36 

Other accounts_ 1,921.16 


$22, 0S1. 54 














































PNEUMATIC-TUBE SYSTEM. 


143 


Accrued accounts: 

Bond interest.,._ 

Taxes due and accrued 


$2, 500. 00 
1, 338. 62 


$3, S3S. 62 


First-mortgage bonds, 5 per cent. 
Reserve for depreciation_ 


25, 920.16 
200, 000. 00 
16, 740. 62 


Capital and surplus: 

Capital stock— 

Preferred stock authorized— $1, 000, 000. 00 
Less in treasury- 103,100.00 

-- 896, 900 oo 

Common stock authorized — 500, 000. 00 

Less in treasury_ 760. 00 

- 499, 240. 00 


242, 660. 78 


„ , 1,396,140.00 

Surplus as annexed_ 26, 246. 66 

--- 1, 422, 3S6. 66 


1, 665, 047. 44 

Surplus account March 81, 1012. 


Apr. 1, 1911, balance per last annual report_$22, 824. 24 

Less : 

Adjustments of dividend Jan. 25, 1908.__ $100.00 

Reserve for depreciation for periods 


prior to Mar. 31, 1911_ 12, 078.12 


- 12 ,178.12 

- $10, 646.12 

Profits for year ended Mar. 31, 1912, as annexed_ 69,414. 54 


Dividends on preferred stock: 

3 per cent on $896,900, Julj, 1911_ 26, 907. 00 

3 per cent on $896,900, Jan., 1912_ 26, 907. 00 

- 53, 814. 00 


Mar. 31, 1932, balance_ 26,246.66 

Statement of profit and loss account for the fiscal year ended Mar. 31, 1912. 

EARNINGS. 


Rentals from United States Post Office Department_$169, 998. 29 

Sales of scrap_ 108.17 


170,106. 46 

EXPENSES. 


Operating: 

Electric power for operating tubes_$43, 507. 43 

Station labor_ 26, 386. 38 

Wagon service_ 169. 50 

Linemen’s expenses_ 380. 73 

- $70, 444. 04 

Maintenance: 

Electric power for repair shop_ 131. 77 

Repair shop labor_ 933. 60 

Machinery repairs_ 2, 615. 07 

Line repairs_ 881. 44 

Supplies (oil, waste, etc.)- 638.16 

Freight and hauling_ 264. 66 


5, 464. 70 










































144 


PNEUMATIC-TUBE SYSTEM. 


General: 

Salaries, administration_ 

Rent of office and repair shop 

Telephones_ 

Stationery and postage_ 

Office expense_ 

General expense_ 

Legal and municipal expense 

Entertainment_ 

Insurance _ 

Taxes _ 


$3, OSS. 63 

1, 682. 64 
636. 49 

89. 80 
164. 36 
482.13 
707. 04 
139. 75 
106. 66 

2, 754. 21 

-$9, 821. 71 

-$85, 730. 45 


Profit on operating_ 

Less: 

Interest on funded debt _ 
Interest on floating debt. 

Reserve for depreciation 


_ 84, 376. 01 

10, 000. 00 

298. 97 

- 10, 298. 97 

_ 4, 662. 50 

- 14, 961. 47 


Net profit, carried to surplus account_ 69, 414. 54 

The cost of construction and installation at the present time would be about 
the same rate per mile as the construction of our lines from Broad Street Sta¬ 
tion to Stations J and C, 2.1215 miles in length, constructed in 1907, and is as 
follows: 

Station C. 


MATERIALS. 

$863. 00 

183. 00 

7. 05 
18. 70 
43. 80 
40.00 

139. 50 
37.00 

64. 63 

8 . 00 
10. 00 

45. 00 
25.00 
12.10 


1, 612. 45 

Station J. 


MATERIALS. 


Trench frames___ $65. 70 

Trench frames___ 31. 25 

Extra charge for 4-pole breakers instead of 2-pole: 

Two 100 amperes, at $45_ 90. 00 

One 50 amperes, at $25_ 25. 00 


Building foundations and pipe trenches, restoring floor, facing walls 
with lath and plaster, cutting 1 door, building wall across one end 
room, cutting window and building light wall to it in adjoining 
basement, cementing entire basement, cost, plus 10 per cent (con¬ 


tract) - 3 , 601. 37 

Pipe supports under tubes_ 13. 95 


Extra piping for temporary connection to Broad Street and return_ 101. 97 


Air-piping gauges and gauge piping_ 

Conduits overhead, all cabels from service switch to motors, electric- 

light conduits, wiring gauge board, etc_ 

Support for auto starters_ 

Trench frames_•_ 

Trench plates_ 

Screw casting_ 

Metal ceiling___ 

Oil can and filter_ 

Special flanged pieces: 

One 5 feet 81 inches long; one 10 feet 2£ inches long_ 

Oil drips, 2, at $4_1_ 

Old boiler tubes for foundation bolts, 1^ cents per pound_ 

Extra charge for 4-pole breakers instead of 2-pole: 

One 100 amperes_ 

One 50 amperes_ ! _ 

Stirrups, etc., for supporting tubes_ 













































PNEUMATIC-TUBE SYSTEM. 


145 


Pipe supports under air piping_ $51. 75 

Metal ceiling- 134 . 00 

Oil cans and filters_ 37.00 

Special flanged pieces_ 103.40 

Old boiler tubes for foundation bolts_ 15. 00 

2 pieces 6-inch I beam (9 feet) for door and window_ 6.10 


Total for materials_ 4, 276. 49 


Broad Street Station. 

MATERIALS. 


Air piping gauges and gauge piping_ $863. 00 

Conduits, overhead; all cable, from a service switch to motors, elec¬ 
tric-light conduits and wiring, gauge board, etc_ 183. 00 

Support for auto starters_ 7. 05 

Trench frames_ 18. 70 

Trench plates_ 43. 80 

Screw casting_ 40. 00 

Metal ceiling_ 139. 50 

Oil can and filter_ 37. 00 

Special flanged pieces: 

One 5 feet 8J inches long_ 64. 63 

One 10 feet 21 inches long_ 115.67 

Oil drips, 2, at $4_ 8. 00 

Old boiler tubes for foundation bolts. 1| cents per pound_ 10. 00 

Extra charge for 4-pole breakers instead of 2-pole: 

One 100 amperes_ 45. 00 

Two 50 amperes_ 25. 00 

Stirrups, etc., for supporting tubes_ 12.10 


Total for materials_1, 612. 45 

I 

STREET MATERIALS. 

Tubing, 21,862.6 feet, at $1.33___$29, 514. 51 

(Short lengths made from defectibe pieces same price per foot.) 

Bends: 

90°, 22 at $191_ 4,202.00 

45°, 20 at $105_ 2,100.00 

Reducers, 73 at $15_ 1, 095. 00 

Drip lengths, 1,300, 720 pounds, at 10 cents- 936. 00 

Manhole covers, 41, at $10_ 410. 00 

Rails for manhole tops, $12.50 per manhole- 512. 50 

Channels for carrying tubes and conduits across sewers- 12. 52 

Rubber rings for bends, 100, at $1.40 per pound- 15. 28 

Step irons for manholes, 4 per manhole, 10 cents each- 16. 40 

£ bolts for bends, 800, at $2.50 per hundred- 20. 00 

3-inch iron conduit over subway, Arch Street and Sixtenth and Cuth- 

bert, 1,087 feet 6 inches, with couplings, etc., cut and threaded— 304. 54 

Special castings for joining iron and terra-cotta conduit- 3. 00 

Sleeves for covering leaking bells, 2^ sets, at $8 (estimated)- 20. 00 

Sleeves for covering leaking tubes- 4. 31 

Hangers for tube over subway- 4. 85 

Nails used at Stations J and C- 2. 29 


Total for street materials- 39,173. 20 


Station G. 

MACHINERY. 

Transmitter, 1- 

Receiver, 1 lower deck 
Compressors: 

One at $3,500- 

One at $3,800- 


$531. 00 
686. 00 

3, 500. 00 
3, 800. 00 


78419—13-10 

















































146 


PNEUMATIC-TUBE SYSTEM. 


Motors: 

One 50-horsepower_ $719. 00 

One 21.6-horsepower_ 521. 00 

Oil separators, 1_ 61. 50 

Pneumatic circuit breakers, 2, at $28_ 56. 00 

Alarm whistle_ 5. 35 

Voltmeter and swinging arm_ 42. 00 

Chain guards, 2 at $45.50_ 91. 00 

Counter for transmitter_ 10. 50 

Stopper for transmitter_ 1. 00 

Handling mechanism for regulating valves_ 78. 00 


Total for machinery_ 10,101. 35 


Station J. 


MACHINERY. 


Transmitters, 2 at $531_ $1, 062. 00 

Receivers: 

One upper deck_ 686. 00 

One lower deck_•_ 686. 00 

(Including gate valves, castings, and regulating valves.) 

Compressors: 

Two at $3,500_ 7, 000. 00 

One at $3,800_3, 800. 00 

Motors: 

150-horsepower_ 719. 00 

130.2-horsepower _ 601. 00 

121.6-horsepower _ 521. 00 


(Motors, two-phase, 7,200 alternating, 220 volts, 690 r. p. m. 
Price includes auto starters and panels, each provided with 
ammeters and circuit breaker; also delivery and erection. 
Meter panel, 2 intergrating wattmeters, 4-pole switch and fuse 


blocks, furnished by the Philadelphia Electric Co. Trans¬ 
formers and inclosures furnished without charge by Philadel¬ 
phia Electric Co.) 

Air piping, including gauges and gauge connections_ 1, 387. 00 

Electric conduits overhead from transformers (service switch) to 
meter panel, thence to switchboard; also cables service switch to 

motors; also electric lights and gauge board_ 272.00 

Electric conduits underground auto starter to motors_ 49. 50 

Support for auto starters_ 10.16 

Oil separators, 2 at $61.50_._ 123. 00 

Screen castings, 2 at $40__ SO. 00 

Pneumatic circuit breakers, 3 at $28_ 84. 00 

Alarm whistles, 3 at $4.35_ 13. 05 

Voltmeter and swinging arm_ 42. 00 

Chain guards, 3 at $47_ 141. 00 

Handling mechanism for regulating valves_ 107. 00 

Oil drips, 3 at $4_ 12. 00 

Counters for transmitters, 2 at $10.50_ 21. 00 

Stoppers for transmitters, 2 at $1_ 2. 00 


Broad Street Station. 
machinery. 


17, 418. 71 


Transmitters, 1- $531.00 

Receiver, 1 lower deck_ 686. 00 

Compressors: 

One, at $3,500- 3,500.00 

One, at $3,800- 3, 800. 00 

Motors: 

One 50-horsepower_ 719 . 00 

One 21.6-horsepower_ 521. 00 











































PNEUMATIC-TUBE SYSTEM. 


147 


Oil separator_ $61. 50 

Pneumatic circuit breaker, 2 at $28_ 56. 00 

Alarm whistle_ 4. 35 

Voltmeter and swinging arm_ 42.00 

Chain guards, 2 at $45_ 91. 00 

Counter for transmitter_ 10. 50 

Stopper for transmitter_ 1. 00 

Handling mechanism for regulating valves_ 78. 00 


Total for machinery_ 10,101. 35 

Station C. 

LABOR. 

Building foundations and pipe trenches, restoring floor, facing walls 
with lath and plaster, building partition across one side of room, 

cost, plus 10 per cent (contract work)_ $1,565.45 

Painting_ 183. 00 

Erecting terminals_ 40. 00 


1, 788. 45 

Station J. 

LABOR. 

Moving gas pipes and fixtures, heater sink, wire partitions in post- 

office building; also connecting drains from areaway to sewer_ $329. 88 

Painting terminals, compressors, piping walls, ceiling, foundation, 

etc _ 147. 00 

Erecting terminals_ 65. 00 


541. 88 

Broad Street Station. 

LABOR. 

Building foundations and pipe trenches, restoring floor, facing walls 
with lath and plaster, building partition across one side of room, 

cost, plus 10 per cent (contract work)- $1,565.45 

Painting_ 183. 00 

Erecting terminals_ 40. 00 


1, 788. 45 


Excavation: 

Earth 8,383.34 cubic yards, at $2.95, contract work- 24, 730. 86 

Rock 47.48 cubic yards, at $3.25, contract work- 154. 31 

(Excavation includes cutting pavement, storing earth if neces¬ 
sary, backfilling, carting away surplus and temporary re¬ 
pairing. Trench figured 32 inches wide or 36 inches if depth 
exceeds 6 feet conduit trench 13 inches wide.) 

Laying tubing, 22.822.06 feet, at 30 cents, contract work- 6 , 846. 78 

(Bends and drips counted double length.) 

4-duct conduit furnished and laid 10,644.09 feet, at 40 cents, con¬ 
tract work (with 3-inch concrete on every side)- 4,256.83 

Brickwork in manholes, 118,741, at $2.50 per thousand, contract 

work (number of manholes, 41)- 2,643.40 

Openings in foundation walls, 166.91 cubic feet, at $1- 166. 91 

Concrete for bottoms of manholes, 28.703 cubic yards, at $7.50, 

contract work- 215. 28 

Extras-moving drains, fluming and cradling sewers, altering sewer 

inlets, cutting and restoring manholes of other companies- 1, 914. 08 

Extra support under tube where needed, contract work- 700. 00 

(This work done at cost plus 10 per cent.) 


































148 


PNEUMATIC-TUBE SYSTEM. 


Gas companies bills for moving mains and services- $2GS. 00 

(Principally to get them out of our manholes.) 

Water bureau bills for moving mains and services- ISO. 01 

Repaving sidewalks where tube is underneath- 337.90 

Also across floor of baggage-room B. S. S., contract work (cost 

plus 10 per cent)___ 722. Id 

Cement paving in baggage room, contract work (cost plus 10 per 

cent)_ 722.13 

Cuttings special lengths, 0 at $2.50 (others were made up without 

cutting'by using short lengths)_ 22.50 

Cutting 10-inch holes in girders over subway_ 115. 00 

Drilling holes for hangers over subway_ 14. 00 

Lagging tubes over subway to prevent freezing (Ehret Magnesia 

Co., SO feet at $2, use of scaffolding $15)- 363.12 

Cutting 3-incli holes through plates at subway for conduits- 44. 27 

Plumbers bills not included in extras above of removing drains, etc_ 15. 9S 

Repairing by city contractors on streets, railroad streets: 

3,021.35 square yards of asphalt, $1.85_ 5, 589. 40 

646.06 square yards of granite blocks, at 22 cents_ 148. 45 

405.96 square yards of granite blocks, at 36.3 cents_ 148. 36 

40.10 feet of crossing reset, at 19 cents_ 7. 62 

Plus 5 per cent on above items to city for inspectors- 294. 38 

Repairing by private contract, contractors to guarantee: 

SO square yards asphalt, Oxford Street, at $1.85_ 168. 00 

170 square yards asphalt, North Street, at $2.43_ 413.10 

730.78 square yards asphalt, Cuthbert Street, $2.43_*_ 1, 745. 49 


Total of street work_ 52. 952. 46 

SUPERVISION. 

Inspectors_ $1, 075. 00 

Draftsmen (9 months)_ 900.00 

Drafting materials (estimated)_ 100.00 

City plans 2.118 minimum_ 382. 58 

Blue prints (total 2,327 for this line, estimated)_ 20. 00 

OFFICE AND INCIDENTALS. 

Secretary’s time_ $300. 00 

Stenographer (half of his time)_ 260.00 

Chief Engineer_ 4, 050. 00 

Telephone (one-third of rent for one year)_ 62.33 

Office rent (one-third of rent engineering office one year)_ 333.33 

Third and Chestnut Street office, $117 per month_ 468. 00 


7, 951. 24 

GENERAL CHARGES. 

Freight on tubes from Camden, N. J., to Philadelphia (shown by re¬ 
ceipts $33.79, balance estimated $98.59)_ $432.38 

Cartage of machinery_ 52.11 

Freight on transmitters, etc., from Norristown_ 10. 21 

Carriers, 50 at $20- 1, 000. 00 

Mandrils, 4 at $10_ 40. 00 

Expansion plugs, 4 at $25- 100. 00 

Pattern for screen casting- 10. 00 

Mr. B.’s expenses to Pittsburgh testing motors_ 29. 39 

R. D. Wood blocking four cars to hold pipes in place_ 25. 00 

Black protective paint for tubes and conduits over subway_ 2. 45 

Testing concrete made with sand taken from trench_ 8. 00 

Iron cement_ 1. 50 

Restoring sheathing under side of bridge at subway_ 300. 00 


2, 011. 04 
















































PNEUMATIC-TUBE SYSTEM. 


149 


Summary of construction of Broad Street station, stations J and G lines, 

2.12 miles in length. 


Materials: 

Station C-$1, 612. 45 

Broad Street station_ 1, 612. 45 

Station J_ 4, 276. 49 

Street materials_ 39,173. 20 

-$46, 674. 59 

Machinery: 

Station C_10,101.35 

Broad Street station_10,101. 35 

Station J-17, 418. 71 

- 37,621.41 

Labor: 

Station C_ 1, 788. 45 

Station J_ 541. 88 

Broad Street station_ 1, 788. 45 

Street labor_ 52, 952. 46 

-— 57, 071. 24 

Supervision_ 7, 951. 24 

General charges_ 2, 011. 04 


151, 329. 52 

Plus 10 per cent to contractor_ 15,132. 95 


Total cost of construction_ 166, 462. 47 


STATEMENT OF MR. KENNETH E. STUART. 

Mr. K. E. Stuart. There are just two or three points that I have 
noted down as Mr. Murray was speaking that I think have not been 
left in a very clear position. Mr. Murdock asked whether a payment 
of 6 per cent per year would not have amortized the sum of $42,000 
in 20 years. The answer is in the negative. To amortize a sum 
you must put aside each year a sinking fund which is maintained at 
interest, and, in addition to that sinking fund, you must pay the 
interest on the original capital. This 6 per cent is merely paying the 
interest on the original capital. It is not in any sense a sinking fund. 

Mr. Murdock. Did you compound that for 20 years? Did you 
do that before making the statement that you have just made? 

Mr. Iv. E. Stuart. In the statement that Mr. Murray has just 
read the interest was compounded. 

Mr. Murdock. But in the statement which you have just made. 
You said you thought the reply would be in the negative. Can you 
say that positively? 

Mr. K. E. Stuart. I say positively that it is in the negative. 

Mr. Murdock. What does the interest on $42,000 at 6 per cent 
compounded for 20 years amount to? Did you make that calcu¬ 
lation? 

Mr. K. E. Stuart. No ; we have not made that calculation. 

Mr. Murdock. The simple interest, of course, is $50,000. 

Mr. K. E. Stuart. It seems to me that that is beside the point. 
What, you asked was whether or not the payment of 6 per cent com¬ 
pounded would amortize the principal. My reply is that it could not 
constitute an amortization because it is not a sinking fund, and a 
sinking fund would necessarily be an addition to that payment. Is 
that clear? 

Mr. Murdock. No ; it is not. 






















150 


PNEUMATIC-TUBE SYSTEM. 


Mr. K. E. Stuart. I have figured the prices on the amortization 
basis a great many times in connection with our tenders, and the 
way we do it is to calculate the amount of the sinking fund first of all. 

Mr. Murdock. How do you arrive at your sinking fund with that 
process ? What per cent do you take for a sinking fund ? 

Mr. K. E. Stuart. The sinking fund is the sum which when set 
aside each year and kept at interest will amount to the original 
principal at the end of the given term. 

Mr. Murdock. What term do you fix upon ? 

Mr. K. E. Stuart. The term is purely optional. 

Mr. Murdock. That determines your percentage ? 

Mr. Iv. E. Stuart. That determines the amount of the sinking 
fund. In addition to the sinking fund, of course, the interest must 
be paid on the principal each year. That must be added to the sink¬ 
ing fund. In this case, as you will see, the interest has not been 
paid. Therefore, it is only fair that it should be compounded. The 
unpaid interest is really an additional investment for the ensuing 
year. 

Mr. Murdock. Then, if this company in the beginning had had 
sufficient to put aside a surplus, it would not in the course of years 
have compounded this charge? 

Mr. K. E. Stuart. Quite so. 

Mr. Murdock. But, inasmuch as they did do it, it is now com¬ 
pounded, in the absence of the surplus sum. 

Mr. K. E. Stuart. Quite so. If that interest had been paid each 
year, we would not have suggested that it be compounded. 

Mr. Murdock. Where does the earnings from the sinking fund go ? 

Mr. K. E. Stuart. They are credited toward the amortization of 
the principal. That is the usual method. That is done every day. 

The second point is with regard to the cost of the patents. Mr. 
Murray has given you the cost of the patents originally as $200,000 
in common stock of the company. My knowledge of the company 
goes back some years prior. I think he has overlooked the fact that 
during all those years we had to maintain a force of draftsmen con¬ 
tinually at work on the improvement of the system, and that force 
of draftsmen was charged under our system of bookkeeping to an¬ 
other account. Consequently, it does not appear in any of these 
statements. It constitutes a very considerable addition to the sum 
that has been invested. I am not, however, prepared to give you 
figures as to that, because I did not anticipate that the point was go¬ 
ing to be raised here. 

The third point is with regard to the loss in operation, amount¬ 
ing to $12,000 the first year. You - will remember that in the first 
year there were no payments to the company whatever by the 
Government. 

Mr. Murdock. Mr. Stewart wanted to know just exactly how you 
arrived at that $12,000. 

Mr. K. E. Stuart. The entire cost of the operation of that line for 
the first year would be lost, because there was no payment from the 
Government. That $12,000 is a figure that was given to me in the 
early years by persons whose recollection went back beyond mine. I 
was not connected with the company at that time, but I was told that 
the operation cost $12,000. In the subsequent years we have credited 
against that the sums actually paid by the Government, 


PNEUMATIC-TUBE SYSTEM. 


151 


Another point is with regard to the Bourse line. I do not think it 
was brought out that the terminal apparatus of the Bourse line has 
been completely modified within the past two or three years, and the 
capacity of the Bourse line has been greatly increased thereby. 

The next point is in regard to the alleged extravagance of con¬ 
structing a tube line to connect stations where the volume of mail 
is only sufficient to utilize a small percentage of its capacity. I 
think the justification of a tube should not be found in the percentage 
of its capacity utilized, but rather in the cost per piece of mail ex¬ 
pedited, and that has been worked out by the last commission as 
about half a mill per letter. Few people would object to paying 
half a mill more to have their letter go by an earlier train. So I 
think that even under those extreme circumstances it can hardly be 
alleged that the tube line is extravagant. 

Mr. Murdock. However, that is the general average. 

Mr. K. E. Stuart. I think somewhere in that commission’s report 
the extreme case is considered, the extreme case of a line that is used 
to the minimum of its capacity. 

Mr. Murdock. And it was about half a mill per piece ? 

Mr. K. E. Stuart. The cost in an extreme case has been given in 
that report, on page 44, as half a mill per letter per mile. 

I want to say a few r words in regard to the general utility of 
pneumatic tubes in the postal service. Questions have been asked 
which indicate that it is the impression of some members of the com¬ 
mission that in cases where the volume of mail exceeds the capacity 
of the tube there is no expedition; no gain. But I think Mr. Masten 
has given you a very good illustration of the manner in which certain 
mail is expedited in New York to the extent of catching a train that 
results in its gaining 24 hours. I think the impression has been left, 
however, that that is an exceptional case. As a matter of fact, the 
high speed of the tubes permits the dispatch of the mails to be con¬ 
tinued for a certain interval after the wagon has left, and the amount 
of that interval depends, of course, upon the length of the line, but 
during that time the postal clerks are at work sorting the mail. They 
can sort something like 30 pieces of mail per minute each. If you 
have 25 clerks there, you would have 750 pieces of mail per minute 
additional sorted for each minute of that extra time. That results in 
the dispatch of several thousand letters on each train that would 
otherwise have missed that train. In Philadelphia there are several 
trains upon which fully 5,000 letters are dispatched that would other¬ 
wise have missed those trains. I think that on every dispatch of the 
day there are certain gains in that way. That is a gain that is not 
exceptional, but quite general. 

Then, in regard to the mail that arrives at railway stations for 
transmission to the post office; the impression seems to be general 
that if the last carrier full arrives after the wagon there has been no 
gain in time. As a matter of fact, the pneumatic tube can supply 
50 sorting clerks and keep them busy with mail to be sorted. Conse¬ 
quently, if there are no more than 50 clerks engaged in sorting a 
particular mail there would be no advantage in bringing it faster 
than the tube could bring it. If it were brought all at once and 
dumped on the floor, it could be sorted no more rapidly. 


152 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murdock. That is an important statement, because it is gen¬ 
erally believed that in the case of a large cargo of mail that the latter 
part of the bulky mail reaches the post office just as soon as the last 
part of the same bulk would reach it through a tube. You say it 
makes no difference, because even if the mail does not get through 
the tube as quickly as by the wagon the clerks could not handle it at 
the other end of the line. 

Mr. K. E. Stuart. Unless there are more than 50 clerks employed, 
and I think at Philadelphia the number employed on the heaviest 
mail is something like 25. Except in rare cases, the actual gain 
in time is the difference between the arrival of the first carrier and 
the wagon, not the last carrier. The last carrier has nothing to do 
with it. From the moment the first carrier arrives the entire staff 
of clerks is busy sorting that mail. 

Then, with regard to the gain in time of outgoing mail. There 
is a certain gain for each train. Consequently, the more frequently 
the trains are, the greater the advantages of the pneumatic-tube serv¬ 
ice. The tendency is to increase the frequency of the trains each 
year. There is a great deal of discussion regarding the use of elec¬ 
tricity for the railways. It is not at all impossible that within a 
measureable time we may use cars dispatched individually instead 
of in trains. Consequently, the dispatches will be much more fre¬ 
quent. This is a condition that is going to enhance the value of the 
pneumatic-tube service each year. 

With regard to the local mail, or mail that originates in a city for 
delivery in that city; there the advantage of the tube is more marked, 
because it deals with the mail throughout its entire transit from one 
station to the other. As has already been pointed out, if a special- 
delivery stamp is put on the letter, it not only starts immediately, 
but it is delivered immediately and becomes as quick as a telegram. 
Besides, it is very much cheaper and is available for the dispatch 
of documents. The advantage of the tubes for local service depends 
largely upon the frequency of the deliveries, and there again we have 
something which is tending to enhance the value of the tube service. 
The report of the commission of 1908 gives the percentage of mail 
handled by tube that is actually advanced. I think that is very mis¬ 
leading, particularly with regard to the mail received, for the reason 
that they have calculated the difference between the time of the last 
carrier and time of the arrival of the wagon. But those figures show 
one very interesting fact: That is to say, that the percentage of mail 
handled by tube actually advanced, increased, as the system is ex¬ 
tended. You will note the percentage of saving on some of the out¬ 
lying lines is 100 per cent; and on some of the short lines it is only 
10 per cent. So there is* still a third cause tending to improve the 
efficiency and value of the tube service. 

That is all I have to say with regard to the application of the tube 
to the postal service, but I am here as representing the efforts to 
introduce our system abroad, and if there are any questions that the 
commission would like to ask me with regard to the foreign develop¬ 
ment I should be glad to answer them. 

The Chairman. You say you are going abroad? 

Mr. K. E. Stuart. I have been engaged abroad a number of years 
in the effort to introduce our system there. 

The Chairman. Have you met with any success ? 


PNEUMATIC-TUBE SYSTEM. 


153 


Mr. K. E. Stuart. I have designed the electric dispatch system 
which has been spoken of by Mr. Murray. We have submitted ten¬ 
ders in Paris and in London for the construction of pneumatic-tube 
lines. Those tenders have been considered by a special commission. 

The Chairman. Pneumatic-tube lines for the transmission of 
mails ? 

Mr. K. E. Stuart. Yes. This special commission came to the con¬ 
clusion that while the tubes would be desirable later for connecting 
the outlying stations, for immediate purposes what they required 
was something that would deal with all the mail and would get it 
all underground. The requirements in Paris and London are some¬ 
what different from the requirements in this country. There the 
first consideration is to relieve the street traffic. Consequently, what 
they wanted was something to put all mail traffic underground, and 
the result was that we were asked to design a system especially 
for that purpose. It is an electric system that makes use of small 
cars that are run through a tunnel. Reference has been made to it 
at earlier hearings of this commission. We have no contract as yet. 

The Chairman. Did both commissions in France and England ask 
for that sort of a system? 

Mr. K. E. Stuart. They did. Provision is made in these tunnels 
for the pneumatic tubes. The tubes would run through the same 
tunnels and go on to stations beyond where the quantity of mail 
would not justify the electric s}^stem. These tunnels are only sug¬ 
gested for cases where there is a certain minimum quantity of mail 
and where it never has to break bulk. The quantities of mail dealt 
with in the two cases I have in mind reach a hundred tons a day. I 
believe there are very few instances in this country yet where any¬ 
thing like that volume of mail is handled. The electric system could 
obviously not be justified in a great many cases in which even the 
pneumatic tube has an excess of capacity. The electric system, 
furthermore, is not as rapid as the pneumatic tube and can not be 
made so. The speed of transit is somewhat less, because it takes 
more time to accelerate the heavy cars, but the principal difference 
is in the fact that whereas a pneumatic tube starts in the center of 
the sorting space in the post office, the electric system cars have to 
start from the basement. Then, again, you can send a single letter 
immediately bv pneumatic tube, and with the electric system you 
can scarcely afford to make a dispatch unless you have two or three 
bags of mail. We have in every case provided for pneumatic tubes 
in the tunnels, and the two systems are considered inseparable. One 
supplements the other. The electric system is intended primarily 
to get the mail underground and incidentally expedite it as much as 
possible. The pneumatic-tube system is intended primarily to expe¬ 
dite the mail and incidentally to get as much of it as possible under¬ 
ground. 

Mr. Murdock. Will you kindly explain why, Mr. Stuart, it is not 
practicable for this Government to secure the right to put tubes in 
the subway in New York city ? 

Mr. K. E. Stuart. I believe the question is purely a practical one, 
as there is no room for them there. So far as I know, that is the 
only obstacle, assuming, of course, that the subways pass somewhere 
near the points that it is desired to connect by pneumatic tubes. 


154 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murdock. Would it not have been possible in the original 
construction of this subway to have made room for the tubes? 

Mr. K. E. Stuart. I see no reason why space should not have been 
allowed, and I think it was an unfortunate oversight that it was not 
done, but, of course, we did not build the subways, and had no way 
of securing the space. 

Mr. Murdock. Some were constructed subsequent to the construc¬ 
tion of the tube lines, were they not? 

Mr. K. E. Stuart. Some were. 

The Chairman. When do you expect to get a reply from the for¬ 
eign governments as to vour offers? 

Mr. K. E. Stuart. I should think within the next three or four 
months. We have built a trial line ifi England. It has been 
approved by the postmaster general of Great Britain and also by the 
French postmaster general. 

The Chairman. Where is the trial line? 

Mr. K. E. Stuart. It is at Chelmsford. It is 30 miles from 
London. 

The Chairman. There is one in Paris also, you say? 

Mr. K. E. Stuart. No; the only one is in England. The rights 
for Philadelphia have been purchased by the Pneumatic Transit Co. 
and they are considered inseparable from the rights for the pneu¬ 
matic-tube system. 

Mr. Stewart. And it is these rights that you speak of as trans¬ 
ferring to the Government with the other rights in case of a sale ? 

Mr. K. E. Stuart. Yes, sir; that is so. . 

The Chairman. Is there anyone else who wishes to be heard ? 

Mr. Milholland. One question raised by Mr. Murdock was not, 
perhaps, answered as fully as might have been by Mr. Stuart, our 
engineer. It was in reference to carrying the tubes into the subways. 
That inquiry applies to London and Paris as well as New York. As 
one having had something to do with tube construction, let me ex¬ 
plain that if the subways originally had been designed for pneumatic 
tubes they might have been utilized in part, but one difficulty now is 
that they are getting subways deeper and deeper. In London they 
go in places 60 feet below the surface. The Central London line 
illustrates this remark. It would be necessary therefore for us to be 
digging down through 60 feet of earth at every station. This would 
be very objectionable. It is not so much, then, the lack of coopera¬ 
tion between the municipal authorities, those interested in the sub¬ 
ways, and the tube people, as it is the physical and practical obstacles. 

The post-office departments in Paris and London look forward to 
controlling the plants or systems for parcel as well as for letter de¬ 
livery. They look forward in London to a system of underground 
transportation for the mails and the parcels complete ultimately in 
itself, and in no way related necessarily to subways or other existing 
means of transport. They expect ultimately, I am told, to do all 
the urban deliveries of the big department stores, or, in brief, to 
handle the bulk of the parcels of all London, a colossal task, but 
highly lucrative. Until the advent of the big mail tubes and electric 
tunnels for parcels and light luggage neither the post office of Eng¬ 
land or France or this country could do the parcel-post delivery in 
cities any better than the big shops or department stores, because the 
foreign Governments had no facilities for such work not possessed 


PNEUMATIC-TUBE SYSTEM. 


155 


by the stores, namely, automobiles, carts, and wagons. Macy, Wan- 
namaker, and Siegel, Cooper & Co. have just as good facilities for 
delivery of nontubeable matter—that is, more than 8 inches in 
diameter—as the Government, but with an underground system of 
delivery the Government, should it purchase and develop a complete 
system, is going to be in a position to handle this city delivery of the 
big stores as well as that of the general public. 

Mr. Murdock. You believe that in the ultimate dispatch of mail 
in the large cities the underground transmission will include in the 
broken bulk packages the larger packages? 

Mr. Milholland. Certainly; everything except such things as 
pianos and bedsteads. 

Mr. Murdock. So you think that virtually all mail transmitted 
will eventually go under ground? 

Mr. Milholland. Undoubtedly; in all congested centers of popu¬ 
lation. It is not choice, but necessity. Look at the paradoxical con¬ 
ditions we have to-day. Millions and millions of men and women 
riding underground, through the bowels of the earth, in all the big 
cities, and yet you are carrying your mails and your parcels up on 
the surface, blocking the streets until they are becoming almost, at 
times, impassable, although every essential problem of underground 
mail and parcel transmission has been worked out. 

Mr. Murdock. Of course, the one thought that enters my mind 
when you make mention of the live freight underneath and the dead 
freight above is the matter of cost. The live freight will pay more. 

Mr. Milholland. Not necessarity—in proportion—if proper con¬ 
tracts be made between the Government and the tube companies. 
That has been made the bete noir of the whole pneumatic-tube devel¬ 
opment. Until it is worked out properly, completely, along rational 
business lines, it is open to the objections that you make against the 
Upham Corners line. That station stands out isolated; it looks 
very formidable; but when you have a great complete system with 
stations all connected up, you find that one or more stations of this 
kind mean no more than an occasional nonpaying telegraph office or 
scores of little way stations on the Atchison, the Union Pacific, or 
any other railroad; these do not pay the company directly to keep 
open, but must exist for public convenience, a factor in the situation 
that can not be ignored by any civilized Government. 

There is another point: You dwell upon the cost of tube service. 
We take issue with you by asserting that it can be made the greatest 
revenue producer of the Post Office Department. It costs a dollar 
to send a telegram to San Francisco, but you can send a letter there 
as long as your arm for 2 cents. What do you pay the 98 cents for? 
Time. But for this tube service the post office charges nothing extra 
to the public. The tubes can beat the telegraph in local delivery 
ninety-nine times out of a hundred, and did the post office charge in 
proportion for expedited letters what is charged by the telegraph 
companies for the saving of time on urban messages the tubes would 
be a source of revenue to-day unparalleled in the department. Look 
at practical results in New York. It formerlv required IT to 3 hours 
to cart letters from the Grand Central Depot to Wall Street; it is 
done now in less than 20 minutes, but the people pay still only 2 
cents postage for all this speed. 


156 


PNEUMATIC-TUBE SYSTEM. 


The larger proposition, however, which I judge to be in the minds 
of you gentlemen who are working on this problem from the Gov¬ 
ernment’s viewpoint is that we have reached a point now where, 
owing to congested conditions in large cities, we must take into con¬ 
sideration the clearing of the streets of what can be taken out of 
them. You must do so and the only way is underground. It does 
not relieve the congestion by putting on more mail carts, vans, or 
automobiles. It only makes things worse. Commissions in France, 
England, and other nations have worked upon this question for 
years. They have reached the same conclusion, viz, that you can not 
have a complete and satisfactory mail and parcel delivery if you do 
not go underground in big cities. 

Mr. Murdock. Is that true, though? 

Mr. Midholland. It is. The pneumatic tube handles the mail in 
detail; the tunnels and the larger tubes will handle it in bulk. You 
must have in this detail your continuous movement. You should not 
wait for your mail until I write my letter; you want yours dispatched 
at once; so do I; so do all. The pneumatic tube comes in with the 
unit—one letter, one card, one telegram, one parcel. When you come 
to the larger bulk, the parcels and big packages, then you take the 
larger facilities, the tunnels or bigger tubes. If you go back to the 
original postal reformer, the great Cromwell, what do we find con¬ 
fronted his genius? Why, they “ waited for the load.” He said this 
was all wrong; the mail should go at a fixed hour be the load big or 
small. We go a step farther. Not waiting for the load, the pneu¬ 
matic tube takes it up instantly, one letter at a time if need be. It 
is moving, moving, moving all the time to its destination, and the 
time will come when those destinations will be much more frequent—- 
ultimately, as the late Postmaster General Smith held, the individual 
house or office—than they are now. You will not, then, Mr. Murdock, 
shrink back from an “ Upham Corners.” You will take the larger 
view of the case, the larger, the more correct and comprehensive. 

Mr. Murdock. Postmaster General Samuels gives emphasis to the 
fact that the very heart of the whole system is the pneumatic tube. 

Mr. Milholland. I would prefer to say that the English post¬ 
master general seems to consider it a very important part; it is 
included in all our foreign estimates, as you will see by our Paris 
tender now before you. 

Mr. Murdock. And yet the London service rejects the letter in the 
lube and takes the telegrams, as I understand. 

Mr. Milholland. Let me explain the present tube situation in 
England and the Continent : The entire tube plants of Europe are 
mere toys in comparison with the American development. The 
Philadelphia lines last week handled more matter than were handled 
during the entire year of 1912 by the little pneumatic tubes of 
London, “ Le Petit Bleu ” of Paris, the “ Rohrpost ” of Berlin, the 
tube systems of Vienna and Budapest, and all the other pneumatic- 
tube systems of Europe. Yes; all they have done in a year would not 
equal what was done in Philadelphia last week. 

The Chairman. But there is a good reason for that; they are not 
so anxious for their deliveries as we are. 

Mr. Milholland. I think you will find that they want their mail 
promptly, and London’s existing postal system is highly creditable 
considering the fact it is as yet without tubes or tunnels. ’ Thev have 


PNEUMATIC-TUBE SYSTEM. 


157 


had a long experience in working out practical conclusions. London, 
you must remember, built the original big tube or tunnel, 3 by 4 feet, 
from the post office to Euston Station. It did not work satisfactorily. 
It was a failure. The detailed expense of this, more than $1,000,000, 
was a total loss. It was not constructed properly, and for years and 
years engineers of Europe as well as America sat down and said 
that no tube more than 4 inches in diameter could be made a success. 
The first tube line put down in Philadelphia just 20 years ago was 
0 inches wide and has been a success from the beginning. If you 
visit Philadelphia you will see that original tube after 20 years’ 
service, and you will also see something of the crudity of the first 
terminal facilities, but likewise their practical efficiency. Then you 
will see how w r e went on from the 6 to the 8 inch tube, and now 
for their larger development. You will see how the larger tube 
comes as the logical outgrowth of the small ones until we are arrived 
at last to a complete system of underground transportation. In 
other words, we are now ready to meet the most exacting demands 
of the parcel post whenever the Government will make proper or 
ordinary business arrangements for this laudable purpose. 

Mr. Murdock. Give us, offhand, the real reason for the failure of 
the first London tube. You said it was a mechanical reason. Why 
did the Duke of Argyle system fail to operate ? 

Mr. K. E. Stuart. Because they proposed to operate it by com¬ 
pressed air, and compressed air is not suitable for operation of tubes 
of that size. It is now proposed to operate such lines by electricity. 

Mr. Milholland. I am one of those unfortunate individuals who 
took pneumatic tube securities, and because I am I would like to 
clear your minds on that point of discrepancy that seems to exist 
regarding the securities issued for the construction of this Philadel¬ 
phia company—issued for construction at par—and the actual money 
put into the system. Suppose a contractor took in payment some 
stock under par and put the money into construction. He certainly 
believed that stock would ultimately be worth par; otherwise there 
was no profit in it for him beyond an ordinary investment, and this 
kind of security no banker would call an investment. The contractor 
soon found that the markets were practically closed to it. There is 
not a banking house of any standing in Philadelphia, New York, Bos¬ 
ton, or Chicago that wants it. Why? They say, “You have, to be 
sure, a great public enterprise, one that seems indispensable to modern 
post-office needs, but you only have 10-year contracts and how do you 
know they are going to be renewed?” We reply, “ Faith of the Gov¬ 
ernment, in the efficiency of the system, and the public requirements.” 
They say, “What happened in 1910? Didn’t they beat the appro¬ 
priation?” They did. That brings us back to this fact that we are 
still dependent upon Congress year by year, which injects an element 
of uncertainty disturbing to sound finance. 

A word more. All the companies are restive in the position that 
seems to be assigned them. Coming over here to discuss the subject 
with you they are made to appear as begging the Government to buy 
them out. This is not fair; it is not true; it is very unjust to us. Mr. 
Hayden expressed the matter to you plainly when he asked that you 
“ give us broader contracts, contracts that we can finance with any 
high-class banking house. Then we can distribute our securities and 


158 


PNEUMATIC-TUBE SYSTEM. 


go on with the work to any extent, as far as the Government de¬ 
mands.' 1 

Speaking in behalf of those who own the Philadelphia system and 
for President Mabon, let me add that they would consider an amorti¬ 
zation proposition gladly, whether it be for 20 years, 25 years, or 
30 years, so that it places us in a position where the investor is sure 
of the return of his capital and not be at the mercy, not of unprinci¬ 
pled men but oftentimes well-meaning, faithful public officials, men 
of the highest sense of civic virtue, but who, reasoning from insuffi¬ 
cient data or imperfect knowledge of the facts, often do the gravest 
injustice to an enterprise. If I might venture to indulge in a per¬ 
sonal reflection, and speaking for those who have had to do with 
public work, there are few times of activity that brings on the gray 
hairs and robs life of its joys more rapidly than such Government 
contracts as we have to work under. There is always anxiety when 
Congress gets together, not on account of any thought of deliberate 
injustice, but from this fact—and I can see it working in your minds 
this afternoon—that you imd those like you in authority fear that in 
some occult w T ay we are heie working up something to get something 
out of the Government to which we are not entitled. I assure you 
that is not the fact. We ask no favors; only fair play. We have con¬ 
cealed nothing; w T e have nothing to conceal; every book is open to 

you. 

All these securities were taken in good faith, and we believe every 
one issued by the Philadelphia system to be worth par, and if there 
is not a sufficient sum realized those securities are a serious loss to 
innocent holders as well as to us who know they represent value re¬ 
ceived in service by the Government. 

My final thought is this: That if the Government, represented by 
your commission, could get down to this matter in a sort of coopera¬ 
tive way, as we have tried to do in London and Paris, and work out 
an amortization system by which the companies are reasonably pro¬ 
tected and a fair profit is shown, we can quickly reach a satisfactory 
solution of the whole problem. If you want to take over the systems 
why, of course, it is in your power to take them, but if you give us 
proper contracts, fair to all concerned, we will go ahead and build 
you every foot of tube and tunnel that you want, under our patents 
which include, we believe, everything of importance known to science. 
We will build on the ordinary contractors’ basis of profit and charge 
only in accordance with recognized terms of such undertakings. Our 
friends have tried to be perfectly frank with you this afternoon. It 
is vital to the company now that we should have no misunderstand¬ 
ing. You are entitled to all the facts that will enable you to w T ork out 
to an intelligent conclusion. 

The larger aspects of the case are connected with this tremendous 
parcel-post proposition. You know what is coming. You are likely 
to be overwhelmed in your post offices before very long, and the city 
streets blocked. You can make this an enormous revenue producer 
for the Government. There is no underground system—I do not 
care what is in the minds of any inventive genius here present—that 
can be made complete without the pneumatic tube in it. You can 
have all the various forms of transportation known and unknown, 
but you must take your pneumatic tube if you want perfection, not 


PNEUMATIC-TUBE SYSTEM. 


159 


only to accelerate all mail—for the farmers of Kansas and the miners 
of Colorado, but for those who go down to the sea in ships—for one 
and all the tube is a prompt, reliable, efficient servant that represents 
constant movement and that immediate delivery which is the essence 
of modern postal communication in the coming ideal postal system 
of the United States. 

I thank you, gentlemen, for your courteous attention. 

The Chairman. If there is no one else who wishes to be heard, 
the commission will now go into executive session. 

Thereupon, at 5.30 o’clock p. m., the commission went into an 
executive session. 


Washington, D. C., Saturday , January 25 , 1913 . 

The commission met at 11 o’clock a. m. 

Present: Senators Simon Guggenheim (chairman), Representa- 
tive Victor Murdock, and Hon. Joseph Stewart, Second Assistant 
Postmaster General. 

ADDITIONAL STATEMENT OF J. E. MILHOLLAND, ESQ., OF LEWIS, 

NEW YORK, A STOCKHOLDER IN THE PNEUMATIC TRANSIT CO., 

OF PHILADELPHIA. 

Mr. Milholland. I feel that I have made my way into this session 
this morning in the same way Mr. Howell said he made his way 
into literature, I wormed my way in. As I looked over the testimony 
and recalled some of the questions that had been put during the 
hearing, there loomed up in my mind some very serious considera¬ 
tions, so serious that, at the risk of seeming to impose upon you, I 
thought I would like to come over and just have a little frank dis¬ 
cussion this morning, very briefly. 

It seemed to me that, overshadowing this whole matter of tube 
purchase, there hung a question of the very largest import, the 
question of Government ownership, the acquisition of large prop¬ 
erties, and their operation by the Government. Of course, that is a 
question that strikes deep into our form of government. I clo not 
know that it strikes our form any more than any other, but it is a 
very profound question, and one that the average legislature ap¬ 
proaches very carefully, and for good reason. Those of you who are 
familiar with the German railroads since the Government acquired 
them, and the Austrian railroads, can appreciate the importance of 
deliberation in taking that step. I am not here to discuss the politi¬ 
cal economy of it, but I want to call your attention to the particular 
bearing of this, namely, that you are not buying someting that is 
of general use; that is to say, you are buying something which, while 
it touches the life of every citizen, is distinctly a Government propo¬ 
sition. It is the Government that is going to use this exclusively, 
and for its own purposes. You buy a railroad, and, of course, you 
are going into the railroad business, which everybody has to do with. 
In this all your business comes in through the Government. That 
is where it is differentiated from almost any other great utility you 

take up. 



160 


PNEUMATIC-TUBE SYSTEM. 


The second question is, it seems that notwithstanding that fact, it 
is only a question of time before this will assume a very much larger 
significance. Everj^ bit of statistics that we get from all over the 
world goes to prove that sooner or later the Government, or who¬ 
ever takes hold of this business of underground transport of mail 
and parcels, is going to run into a tremendously large development, 
and that somebody has to do it, whether it is the Government or a 
private company, is demonstrated as conclusively as a problem in 
Euclid. 

Take, for example, the increase in the carriages of Paris in the 
seven years between 1902 and 1909. The increase has gone from 
70,000 to something like 82,000. Bicycles have nearly doubled. 
There are something like 270,000 bicycles and 60,000 carts of various 
characters—hand carts, four-wheel carts, and such as that. The 
increase since 1909 is still more striking, though we have not the 
figures complete, although we expect to have them in a very few 
days. 

That is not the most significant part of these statistics, namely, 
that the modern carriage, the automobile, the tricycle, and the bicycle, 
going very much quicker, really occupy, in comparison with the old 
horse-hauled carriage, about three times the space, and that is where 
your pressure comes, not only in Paris, but in London, in New York, 
in Philadelphia, and all the other large cities. That is the distinc¬ 
tive pressure of the modern carriage development, and you are not 
dealing with the actual increase in the number of vehicles, but you 
are dealing with their more rapid distribution through the streets. 

Mr. Murdock. Is not that dual, however, in its action and in its 
effect? The automobile which moves quickly to a given point and 
occupies that point for an infinitesimal part of a second, also moves 
away from that point and relieves traffic ? 

Mr. Milholland. Yes, sir; but what we have to deal with is not 
the vehicle so much in rest as the vehicle in motion. That is the 
problem. It is the movement of the vehicle, whether it be an auto¬ 
mobile, or a handcart, or a bicycle, or a horse-hauled carriage. That 
concerns us, and that makes up the procession through the streets. 

Mr. Murdock. I have in mind a street through which heavily 
laden work wagons pass. Surely a given number of vehicles of that 
type, say 100, would cause more congestion at any one point along 
that street than 100 rapidly moving automobiles ? 

Mr. Milholland. Let me get your point. 

Mr. Murdock. In other words, my thought is this: That the more 
fluent a traffic, the less congestion there is likely to be. You are 
making just the opposite argument. 

Mr. Milholland. Yes and no. The congestion of traffic we have 
to deal with in a practical way is covered by the term “ regulation.” 
The reason New York can handle its traffic, greatly increased as it is 
over what it was 10 years ago, has been the science of traffic regula¬ 
tion that has been worked out there in New York, following London 
and Paris. But you go to Capt. O’Brien to-day, of the traffic squad, 
and he will tell you that they are getting to the limit of what can be 
done in the area of New York thoroughfares, even with the best 
regulations that are at their command. There is a limit. Your point 
about the quick-moving vehicle is a modification. I concede that 


PNEUMATIC-TUBE SYSTEM. 


161 


there is a certain modification, but, Mr. Murdock, you get to the 
point where even the modification is of such slight effect that you are 
crowded to the doors. 

Mr. Murdock. I did not intend to divert you, and, of course, I 
acknowledge that there is an increasing congestion in the streets. 

Mr. Milholland. That is the point I want to drive home. You 
find that very strikingly brought forth in the board of trade report 
as to London. It is not a question peculiar to one city. The problem 
m all great cities in this matter is very impressive as you study it. 
It is what everybody feels; it is what the great delivery houses feel. 
Since I had the pleasure of appearing before you I had a 2-hour 
talk with one of the largest department store managers in New 

York, and he said exactly what Mr. Wanamaker said several years 
ago. 

The Chairman. Would you like to have the report of the board of 
trade printed ? 

Mr. Milholland. I was going to mark that so that you would not 
have to wade through a great mass of unimportant matters. 

Mr. Murdock. You were about to tell what Mr. Wanamaker said. 

Mr. Milholland. Mr. Wanamaker said seven years ago: “This 
question of parcels underground is not debatable. That has all 
passed all discussion. All we want is the end of the tube or the 
tunnel in the establishment, and we are prepared to use it and do 
aw y ay with our old carts and wagons at the earliest opportunity.” 
That voices the general sentiment. If you will take it from all the 
large cities here and abroad, you will find a perfect unanimity of 
sentiment, whether it is the expression of Siegel, Cooper & Co., 
Whiteley & Co., or Demorest, of Paris—everywhere you go you will 
find the desire of large concerns is to get rid of the old mode of deliv¬ 
ery. Why ? There is a certain advertising value in their wagons 
going about the streets, but they are perfectly willing to forego that. 
Mr. Straus told me last week that that counted for nothing in com¬ 
parison with getting their goods delivered promptly and that the 
congestion of the streets was becoming such that their deliveries ran 
into all hours of the day and night. They have gone so far that they 
are sending their stuff up into the upper part of the city by huge 
vans and using those vans as a central depot from which to make 
their deliveries the following day. You are not discussing anything 
of an academic nature, a theory; it is actual conditions that you will 
satisfy yourselves on when you make this trip into the large cities. 

The next point—and I am trying to keep to the theme I announced 
at the beginning that seems to me to be perplexing, namely, the ques¬ 
tion of Government ownership—to rid that of as much objection as 
possible, even in this country, where it seems to be the exception to 
the rule, I fall back on the suggestion I made to you at the hearing 
the other day, namely, why buy out? Why not control this? We 
do not want to sell out. We are perfectly willing to develop under 
the guidance and operation of the Government, develop this propo¬ 
sition, which is one in its infancy. Look at it. The tube was begun 
about the same time as the parcel post. Y r ou are paying forty 
millions out for your parcel post. 

Mr. Stewart. Rural mail delivery, you mean? 


78419—13-11 


162 


PNEUMATIC-TUBE SYSTEM. 


Mr. Milholland. Pardon me; I confused the terms; you are pay¬ 
ing forty millions out for rural mail delivery, and you are paying 
less than a million for the tube. Forty millions for the accommoda¬ 
tion of the country districts, less than a million for the city, which 
is the one gap in our modern progress. The trains fly from city to 
city 60 miles an hour, and when they strike the depots down goes 
your rate of delivery to about 4 miles. The report is that the best 
time that can be made in the city is between 7 and 8 miles, and that 
is exceptional. There is the gap that has not been covered, and why 
has it not been covered? Because this question of underground 
transport in the large cities has never been worked out clearly by 
a tribunal with power to give effect to their conclusions. It has been 
done with the best of intentions by the department and those inter¬ 
ested in a sort of rule-of-thumb way. It has never been worked out 
to show how profitable that service can be made to the Government. 
In other words, it has never been dealt with in proportion to its 
importance. 

Mr. Murdock. That is a very interesting impeachment. I can not 
say I agree with it at all. As a matter of fact, in the larger cities in 
the United States we have developed the tube system to the point 
that we are expediting a considerable amount of the outbound mail 
to the station from the post office, and the gap which you designate 
has been filled to that extent. 

Mr. Milholland. Whatever is in this world is by comparison, I 
think you will agree, Mr. Murdock. My point is this, that whatever 
you have done, this 50 or 60 miles you put down of the 8-inch tube, 
you have not, in any single case, completed the system in one city 
so as to get the full benefit of a complete service. Furthermore, you 
have not made the provision yet by which the tube service would 
stand in the position, inside the city limits, that a railroad system 
would stand in covering an area of territory that had been assigned 
to it. There are missing links constantly being brought to the atten¬ 
tion of the department, sometimes in an embarrassing way, and 
wherein justice is not done. I am not giving you that as a grievance, 
but only as an illustration. You see that, and it jars. If they were 
united it would be a different proposition. But beyond all that, 
you have only got two tubes whose capacity for the first-class mail 
is unlimited. 

The next stage of the development that is being forced upon you 
is the parcel post. The parcel post is coming, and it will come, in 
all human probability, by leaps and bounds. You must meet that. 
The larger development is impending, and it is that larger develop¬ 
ment that I want to draw your attention to particularly and say 
that here is the foundation for a complete system that, if allowed 
to be developed by those who worked it out from the beginning 
and solved the problems so far as they were permitted to do so and 
were able to do so,-will fill your needs. It seems to me you stand at 
the threshold of a mighty important development in transportation. 

Mr. Murdock. Specifically, and along mechanical lines, what 
would you suggest? 

Mr. Milholland. I would suggest that you give us contracts that 
will enable us to go on and develop these systems in the various 
cities,, not only the tubes and the larger tubes, but, where needed, the 
electrical tunnels. 


PNEUMATIC-TUBE SYSTEM. 


163 


Mr. Murdock. A perfected underground system for the under¬ 
ground transmission of mail, would, in your opinion, comprehend 
not only an 8-inch tube for the dispatch of letters in small lots, but 
the larger tube for the dispatch of unbroken bulks of letters, and, in 
addition to that, a third tunnel carrying, under electrical power, 
some sort of vehicle which would carry the mail sack which con¬ 
tained the parcels? 

Mr. Milholland. Not only the mail sack, but everything that 
came into the post office for transmission; in Paris and London it is 
6 by 2 by 2, in round numbers. 

Mr. Murdock. Then, in your perfected system, you would have 
three different vehicles for the conveyance of the mails, three or 
more ? 

Mr. Milholland. Yes; all united in one system. 

Mr. Murdock. I understand; but you would have three ways of 
transmitting mail matter underground? 

Mr. Milholland. Yes; mail and parcels. 

Mr. Murdock. I mean anything that is mailable? 

Mr. Milholland. Yes. 1 am looking toward the diversion of all 
this big business, this parcel business of the great cities, of the Wan- 
namakers and Maceys and of the Siegel Coopers, into these tubes and 
tunnels. That is inevitable, whether you do the business or private 
companies do the business, whether it is done under supervision or 
entirely in the hands of a private company. That is inevitable. 
That is to say, if you do not do it that sort of a system will be 
worked out just as surely as the Chicago subways were blunderingly 
constructed and are now being reconstructed. There are certain 
things that have happened on our side as well as on yours. I need 
not dwell on the fact that the parcel post is a great development and 
is of tremendous significance. We have met and solved a problem 
which has been the deterrent factor in this development, namely, 
this, when you take your pneumatic carrier it is dispatched without 
further ado, it is sent out from the transmitter and received at the 
other end of the line, and nobody has to go with it. But when the 
Old World governments came along to the car, then they had to do 
just what our friends in Chicago have had to do in their subway— 
they had to put a man on the car, and the result was that the fixed 
charges became terrific, and the result was that that company was put 
in the hands of a receiver. 

Up to two years ago the English post office had not an idea in its 
head, and said so frankly, as to how they could run these cars with* 
out a man on them. When you put a man on them your charges 
were beyond any serious consideration by the Government. The 
automatic car solved that problem. The car is dispatched and 
handled exactly like the carrier. It is all worked by the keyboard, 
and the result "has been of far-reaching import, and it has been in 
harmony with the tube development, whose great advantage was 
that it did not require anybody going along with the carrier. 

Mr. Stewart. I understand, Mr. Milholland, that your system of 
a small tunnel with an electric car, together with a tube of the size 
that we now employ, would furnish practically all the service that 
would be required, "in your opinion, to move packages and parcels 
and mails; that is to say, you would not need the intermediate tube 


164 


PNEUMATIC-TUBE SYSTEM. 


which Mr. Murdock referred to—for instance, a large tube—as well 
as a small tube, in connection with your cars? 

Mr. Milholland. There are places we are constantly coming in 
eontact with where it is of especial value to have a large tube. My 
point is this, that you have the facilities, and it is simply a question 
of where you will use this particular kind of transportation or use 
the other. I have a graphic picture here, Mr. Murdock, which will 
give you a very clear idea of the thing. 

Mr. Milholland thereupon exhibited a photograph to the com¬ 
mission. 

That gives you a graphic picture. So that the system is absolutely 
complete, and the parcels and the mails would go through without 
any difficulty. Again and again the tubes of New York and other 
cities have saved the newspapers their distribution through the 
country. You spoke the other day about having an eye on the stal¬ 
wart. farmers of Kansas and the miners of Colorado, and I call your 
attention to the fact that the newspapers in the large cities would 
bear testimony that they would not have gotten their newspapers out, 
and would not have gotten their mails, if it had not been for the 
courtesy of the Government in the use of their tubes. 

The main question is this, that you are all very busy men, and I 
think it was Abraham Lincoln who said that it was only busy men 
who could be gotten to do anything in this world. I do wish you 
could transfer the seat of your deliberations over to where you could 
see these things in operation. I think it would facilitate your de¬ 
liberations wonderfully if you could get over there and see every¬ 
thing I have been talking about in actual operation, or else in the 
form of moving pictures. 

Mr. Murdock. Have you given any consideration to the possi¬ 
bility, even though it be remote, of such a development in aeroplanes 
that underground transmission of the mails might eventually dis¬ 
appear ? 

Mr. Milholland. You know that was tested, and practically. My 
old friend Capt. Wyndham started a post office, by the grace of the 
Government, down at Windsor, and they ran the mails there as an 
experiment, and of course it was a failure. But that is no argument 
against it. It is only a question of its not being developed. But I 
do not see how you could go to work and consider an aeroplane 
development, knowing the space that is required, from all we know of 
the science at the present time—the space for descent in the laarge 
cities, and for ascent. You are bumping right into the great trouble 
that confronts us to-day, the great obstacle in the way, namely, you 
have not the space for your wagons, for your automobiles, for your 
carts. If you could imagine a city where there would be perfect 
freedom of thoroughfare, and there was ample room for everybody, 
the pressure to go underground would not be so great for pas¬ 
sengers or parcels. I can not conceive of an aeroplane along the 
lines of the present stage of development. I can not see where you 
could get your space for your rapid dispatch. You must remember 
that this rapid dispatch, this delivery of the letter the minute it 
comes in, getting it on its way, and getting it to its destination, is 
the ideal to which the post office is working. 



PNEUMATIC-TUBE SYSTEM. 


165 


Mi. Mudock. Following a similar line of thought, have vou ever 
given any consideration to an overhead carrier system? 

Mr. Milholland. Tlou mean using the telegraph wires? 

Mi* Murdock. Using something above the telegraph wires, of 
course, m a city. 

Mr. Milholland. In the first place, you know in a city the tele¬ 
graph wires have been cut down relentlessly. You know the trouble 
we have had in case of fire, etc. It was a healthy sentiment; it was 
not anything irrational. There was an experiment made down in 
Rome, when we were bidding on some Rome contracts four or five 
years ago, but it w T as quickly decided to be impossible. 

Mr. Murdock. It was attempted in Rome? 

Mr. Milholland. They put up a line in the outskirts. You can 
run your parcel along just as you can on the little trolleys in the dry 
goods stores. There is no mechanical difficulty in the way. Your 
difficulty comes from being confronted by an enlightened munici¬ 
pality, and they are all getting more enlightened. Whether you 
would have your transmission by the old telegraph-wire system, no 
matter whether it is high over the roofs or anywhere else, it is still 
open to the old objections of the telegraph system, which was removed 
entirely. 

Mr. Stewart. I will say we considered that in New York for a 
line between the Pennsylvania and the New York Central and found 
it was not practicable. I suggested that to a commission that was 
appointed. 

Mr. Murdock. Just in what point was it impracticable? 

Mr. Stewart. Mainly from the points of view suggested by Mr. 
Milholland. 

The Chairman. I do not see how you could get the permission 
from the authorities of the cities. 

Mr. Milholland. The householders objected. The reason they had 
to build the tremendous system of subways was that the household¬ 
ers were in open revolt. I am very glad to have you bring up these 
questions, because if anything I say is of any value it is worked out 
of a very hard experience. I have had to do with this business a 
good many years, at home and abroad, and all these questions which 
at first blush seem, to be of easy solution, when you come to work 
them out in actual practice assume an impossible form very rapidly. 

Mr. Stewart. Let me suggest a further point about the aeroplane 
service, in which I am very much interested myself. I asked a $50,- 
000 appropriation last year, and did not get it, to install a general 
experiment service. It would involve, you recognize, the placing of 
a man in the aeroplane, and that brings up the same problem they 
had out in Chicago with the tunnel service—they had to place a man 
in the car, which made the service so expensive that they ultimately 
found the cost of operation so high that it could not be considered 
at all. 

Mr. Milholland. I think it is only fair to say, in answer to Mr. 
Murdock’s question, that the application of the aeroplane between 
cities is another question entirely. I have not discussed that, because 
our proposition is of limited area. Ours is a strictly intramural 
proposition. We are dealing with the delivery of parcels and pack¬ 
ages in large cities. 


166 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murdock. My question went wholly to the proposition of the 
carriage of mail within the large city. 

Mr. Milholland. I think the issue is very clearly defined. It is 
possible in what I have tried to say in this desultory manner about 
the delivery of parcels in large cities that it may seem to you a little 
Utopian. It is nothing of the kind. The real logic of the situation, 
if you will go to its full lengths, points to this conclusion, that there 
is really no more reason, logically speaking, why a great firm should 
do its own delivering than that a great manufacturing plant should 
own its own railroads and ships for the delivery of its wares all over 
the country or all over the world. It is a distinct business, a business 
of transportation, whether it be within the city limits or between 
cites, and it reaches rapidly a point where it requires a company or a 
concern who will give itself, its energy, and its ability and experience 
entirely to that. That is the point 1 want to emphasize, and because 
it is one so clearly in the minds of these merchants to-day and they 
are looking forward to relief, that brings us right to the crux of the 
whole matter, who is going to give them the relief? Are you going 
to do it through a private company or is the Government going to 
take up this tremendous undertaking? 

The Chairman. I would like to hear what your proposition is for 
your company and what policy are you in favor of. 

Mr. Milholland. If I were asked to outline a policy in very gen¬ 
eral terms to-day to this commission, I would say, abolish the present 
contracts and give us a contract for a definite period of years, long 
enough to enable us to amortize the contracts so that there will be no 
question about the principal coming back. 

The Chairman. At that point, contracts for how many years? 

Mr. Milholland. We have worked it out. We have a proposition 
we were going to submit to the commission. If you will give us a 
slight increase on your annual rentals—it is not heavy—we will enter 
upon a contract with the Government to go on doing this business, 
and at the end of 25 years turn the plants over in first-class condition 
to the Government; that we will build anything you want built at 
actual cost, plus the usual contractor’s profit of 10 or 15 per cent, all 
bills passed upon by the Government engineers. We will take that 
construction as finished, capitalize it at actual cost, and, with the 
same kind of contract, after operating it, have it turned over at the 
end of the contract period to the Government, one right after the 
other; or we will build for the Government and turn it over, if they 
desire to have immediate possession. But what we want is the ex¬ 
ploitation of it, the development, the carrying out, of these ideas we 
have worked out through all these years. The Government is pro¬ 
tected in this way, that, as this development goes on largely, you 
have your hand on it; you know it is going to come to you as certainly 
as the subways in ^New York are going to come to New York, just as 
the subways came to Paris at the end of a certain period of years. 
The contracts are clearly defined. You know exactly what we are 
going to make. You know exactly where your supervision ends and 
where our initiative has a free scope. 

If you do that, you get the benefit of all this experience, you get 
the benefit of the individual initiative and enterprise, you get all 
the new patents that are constantly coming out. Improvements are 
going on; you can not limit human invention. That is going to tell 


PNEUMATIC-TUBE SYSTEM. 


167 


to the advantage of the Government, and at the same time you are 
relieved from this assumption by any development of the operations 
of a company that they have not really had time to familiarize them¬ 
selves with, and I do not say they can not do it readily, but what I 
do say is this, if you take it right over to-morrow, pay us our money, 
and tell us to go about our business, you will lose a factor that is more 
important than any cash consideration. I am putting forward that 
plea, gentlemen, because it seems to me that it presents a solution 
of the question, it presents the acquisition of these properties by the 
Government in the modern, scientific form, in the form that is prac¬ 
ticed all over the civilized world to-day, and it also gives due consid¬ 
eration to the importance of the individual enterprise. 

The Chairman. What advantages would your company have under 
the arrangement you suggested? 

Mr. Milholland. Mr. Chairman, we would have this advantage, 
that, instead of having our securities, as we have now, on our hands, 
we could go and market those securities and distribute securities, as 
any large enterprise must be handled. You can go into any bank in 
the large cities, and there will be no difficulty at all about making 
such a distribution as is fair and equitable. The Government exer¬ 
cises, all the time, such a supervision as would make it impossible for 
us to have to spend the long time we spent here the other day show¬ 
ing you those petty details. 

There was one other point; the relationship of the Government to 
the enterprise becomes so clearly defined that it is something that can 
be spread out at any minute it is called for. There w r ould not be a 
single mystic feature about such a proposition, and I have the high¬ 
est authority for saying that those contracts can be drawn so that 
there never need be the slightest misunderstanding. You have to 
have, of course, special congressional authority. I believe the con¬ 
tract now is limited to 10 years, is it not? 

Mr. Stewart. Ten years; yes. 

Mr. Milholland. A 10 years’ contract is unjust to the Govern¬ 
ment, just as it is to us. You have to go and sell your securities to 
Tom, Dick, and Harry, who will take them at their own terms, and 
it is not a thing that any Government can contemplate. 

Mr. Murdock. I want to ask you if you can tell me why the history 
of the pneumatic tube service shows it, on its investment side, to have 
been so unprofitable. I want it for the record. I want an answer for 
the record that will be illuminating. 

Mr. Milholland. I have prepared an answer, Mr. Murdock, in a 
little detailed form, which I should be very happy to file with this 
commission, and which I think will set forth the reasons to your 
complete information. Whether it is to your satisfaction or not, I am 
not prepared to say. 

Mr. Murdock. 1 wish you would include it in the record, because 
I want that fact set forth with as much detail as possible. # 

Mr. Milholland. I am really grateful for that question, because 
it will enable us to clear up the story of the tube. The financial 
history of the tube is really more relevant at this moment than the 
mechanical history. No one questions the success mechanically, but 
the point you have raised touches the financial side, and I shall be 
very glad to submit it. I would like to answer it in the form most 
satisfactory to you, 


168 


PNEUMATIC-TUBE SYSTEM. 


The Chairman. I should like to have it in that form, because it 
may remove some prejudice that may exist. 

Mr. Milholland. I shall be very glad to submit it. 

Thereupon, at 12 o’clock noon, the commission went into executive 
session. 

EXECUTIVE SESSION. 

Present: Senator Simon Guggenheim (chairman), Representative 
Victor Murdock, and Hon. Joseph Stewart, Second Assistant Post¬ 
master General. 


STATEMENT OF MR. ALFRED BROOKS FRY, CHIEF ENGINEER, 

UNITED STATES TREASURY SERVICE. 

The Chairman. We are very much obliged to you for being here 
to-day, Mr. Fry. 

Mr. Fry. Mr. Chairman, I am on duty as the supervising chief, 
engineer of the United States public buildings and superintendent of 
construction for the ports of New York and Newark. I am also 
detailed to the United States Immigration Service in a similar 
capacity. 

The Chairman. We want to get some information from you, Mr. 
Fry, in reference to the service tubes in operation in New York and 
elsewhere. 

Mr. Murdock. You are in charge of a tube between the custom¬ 
house and the appraiser’s stores? 

Mr. Fry. Yes, sir. 

Mr. Murdock. A tube owned by the Government ? 

Mr. Fry. Yes, sir. 

Mr. Murdock. What is the size of it? 

Mr. Fry. Eight-inch. The distance between the two buildings is 
approximately 11,000 feet. The receiving and dispatching mech¬ 
anism is identical with that used by the Post Office Department, and 
the system is virtually the same as that used by the Post Office De¬ 
partment. 

Mr. Murdock. To what percentage of its capacity is that tube 
used? 

Mr. Fry. It is used to transmit all the documents of every de¬ 
scription between the appraiser’s stores and the customhouse. At 
certain hours in the morning and certain hours in the afternoon it 
is used virtually to its maximum capacity; during certain intermedi¬ 
ate hours obviously to a less capacity. The dispatch during the 
early working hours and the late working hours is on a 15-second 
headway. 

Mr. Murdock. What is the length of its day—how many hours? 

Mr. Fry. Normally about eight hours. 

Mr. Murdock. What would the average for the day be in the use 
of its capacity? You say during the two congested portions it is 
used to its full capacity? 

Mr. Fry. Yes. 

Mr. Murdock. Take the average throughout the day; have you 
any means of knowing what the average would be? 


PNEUMATIC-TUBE SYSTEM. 


169 


Mr. Fry. Taking the whole day and extending its working hours, 
its capacity could be three or four times what it is at present. Per¬ 
sonally, I have always assumed that it would become part of the 
post-office system of New York, because, logically, sooner or later, I 
should assume, there would be a connection made to the foreign sta¬ 
tion at Morton Street, and I should assume that ultimately that would 
become part of an extended system for the West Side. 

Mr. Murdock. Have you ever made any tests to show to what per¬ 
centage of its capacity that tube is used during the day? 

Mr. Fry. No, sir; except the regular service tests; that is, of course, 
when the contract was completed, there were specified certain very 
complete, and I will say exhaustive, operating tests, where the tube 
was worked up, using, for instance, artificial loads in the carriers 
to the maximum capacity, and my recollection is on a 5-second 
headway. 

The Chairman. What has been going through our minds is this: 
We have been in communication with certain engineers of New York, 
the firm of Stillwell & Co., of New York, to make a report for the 
commission on all the systems of the various cities. They have stated 
that, in their judgment, it would take them at least 90 days to make 
an exhaustive report to us. Do you know anything about them ? 

Mr. Fry. I know that Mr. Stillwell is a civil engineer and a mem¬ 
ber of the society, and anyone who is a member of the Society of 
Civil Engineers I think can be fairly said to be above reproach pro¬ 
fessionally. I have not the pleasure of knowing him personally. It 
may not be out of place, since I do not know whether you know it 
or not, to say that I was on the original commission, being one of 
the engineer members. Mr. Theodore C. Search, who was then the 
president of the American Manufacturers’ Association, was chair¬ 
man, and the engineer members were the late Prof. Thurston, dean of 
the engineering college at Cornell; Mr. Manning, the consulting 
engineer for the Baltimore & Ohio Railroad; Mr. Lyman E. Cooley, a 
very eminent consulting engineer, of Chicago; and myself. Then I 
was also attached, and I believe actually appointed, though I was 
unable to serve very actively, to the commission of two years ago, 
but I was so jammed with other work at the time that I could only 
consult with them in New York. So that I have a fair knowledge 
of the system in Chicago, and perhaps a little better than fair knowl¬ 
edge of the one in Philadelphia, and a very accurate knowledge of 
the system, obviously, in New York and in Boston, because I have 
had duty in both of those ports when the tubes were being put in 
originally; and, in fact, the routes I suggested in Boston originally 
to Col. Covency, who was postmaster when I was on duty there, very 
much to my surprise were afterwards used by the tube company. I 
thought, in the light of more recent investigation, they could find 
easier and cheaper routes than I laid out. 

The Chairman. Are you a civil engineer ? 

Mr. Fry. Yes, sir; I have had a rather varied experience. I am 
a member of the American Society of Civil Engineers, the American 
Society of Mechanical Engineers, and the American Society of Naval 
Engineers. 

Mr. Murdock. How much did the appraiser’s stores tube cost? 

Mr. Fry. The contract price was $174,345. 


170 


PNEUMATIC-TUBE SYSTEM. 


Mr. Murdock. What is the annual appropriation for its mainte¬ 
nance ? 

Mr. Fry. There is none. We cover the expenses in our ordinary 
operating expenses. There is no specific appropriation. 

Mr. Murdock. What are those operating expenses? 

Mr. Fry. The operating expenses consist of electric power, which 
we furnish for the customhouse end, and steam power, which we 
furnish for the appraiser’s stores end, the application of power de¬ 
pending upon the nature of the plant in each case at the respective 
buildings. Conditions seem to make it desirable to use steam power 
at the appraiser’s store, since we have at that plant probably what 
is the largest steam-hoisting equipment in any building in the United 
States. We have enormous freight-elevator equipment. To the power 
cost should be added the wages of three operators aggregating $2,520 
and repairs and supplies, which last year amounted to $672. The 
total operating cost for calendar year 1912 was $5,694. This includes 
cost of power. 

Mr. Murdock. Can you give the commission any idea of what the 
cost of that tube is annually? 

Mr. Fry. I have made a definite report on that. 

Mr. Murdock. I wish you would include that in the record, and 
include in that the annual cost of maintenance, including the renewal 
of the carriers. 

Mr. Fry. Yes, sir; I have all that. 

Mr. Murdock. I have asked these questions to lead up to the chief 
one in my mind, namely, if you as a private individual were asked 
to purchase a given tube, or system of tubes, in a city, what, in your 
mind, would be the first thing that you would want to know ? 

Mr. Fry. The first thing that I would want to know would be the 
conditions under which those tubes were installed, the character of 
the streets, and the soil along which the tubes were built, and then, 
subsequently, because it is more easily determined, the character of 
the operating mechanism—that is, the power-generating apparatus, 
and the receiving and dispatching apparatus. The most material 
thing, the greatest expense, is obviously the construction of the line, 
and to a commission with the general knowledge that this commis¬ 
sion has, the trouble and expense of line construction in our greater 
cities is something that one does not need to amplify. 

Mr. Murdock. Having concluded that these various topics were 
the things you should inform yourself upon, how would you go about 
to practically inform yourself? 

Mr. Fry. For instance, as regards New York, I think now I have 
a good practical knowledge of what the conditions of those lines are 
in New York, because I am responsible for the power; I am not re¬ 
sponsible, understand, for the operation of the tubes, but I am re¬ 
sponsible for the power. For instance, we furnish to the lower por¬ 
tion of the lines in New York power at the Customhouse Building, 
at the General Post Office Building, and at the Brooklyn Post Office 
Building, and naturally any irregularities in operation, or any trou¬ 
bles, are immediately brought to my attention. I have a very com¬ 
petent office and a very competent engineering force, and part of our 
system requires that any derangements be referred to me, both at 
night, Sundays, and holidays. 


PNEUMATIC-TUBE SYSTEM. 


171 


Mr. Murdock. If you were a layman, Mr. Fry, you would at once 
hunt up an engineer who could go over this system and give you cer¬ 
tain ideas about it. What would you expect the engineer to report 
to you ? 

Mr. Fry. I should expect him to report to me the date on which 
these lines were laid. I should expect a report from him that he 
had given due weight to the streets where there is liability of trou¬ 
ble from quicksand, and streets where there might have been leakage 
in sewers, where there might have been leakage from water mains, 
or where there might have been new construction that might have 
subsequently disturbed these lines. Then I should expect a special 
investigation of the trap system. My experience has been that trou¬ 
bles on these tube lines normally have come from two causes, one a 
derangement of the line itself, incident, usually, to the settlement or 
disturbance; secondly, the accumulation of water in those lines, when 
there are violent changes of temperature producing condensation. 
Therefore, the drainage of those lines becomes a very important 
thing. Any engineer can, without very much trouble, of course, 
make an examination, as I say, of the power equipment and of the 
receiving and dispatching apparatus. 

Mr. Murdock. You would expect the engineers you hired first of 
all to identify and locate all the tubes under the ground; you would 
expect them to bring to you some information as to the physical con¬ 
dition of those tubes. Further than that, would you go into the mat¬ 
ter of what it would cost to reproduce those tubes? 

Mr. Fry. I think it should be done, always assuming that there 
was money and time available for such a research. 

Mr. Stewart. Would you go into the matter of the original cost? 

Mr. Fry. The original cost, of course, would have to be a matter 
of one’s own estimate, backed up by such facts as could be properly 
authenticated. 

I make no doubt that in many instances in the large cities, no¬ 
tably in the congested portions thereof, it probably would be more 
expensive to put in tubes now than it was to build the original lines, 
because, firstly, of more stringent municipal regulation; secondly, 
because of the introduction of larger water pipes and more of them, 
larger gas pipes and more of them, electric conduits, and in many 
cases, also, underground trolley tracks—that is, the plow trolley type. 
For example, I make no doubt now that the expense of running up 
School Street in Boston, crossing the Boston subway, and getting 
through Haymarket Square, would be very much greater than it 
was, let us say, 12 or 14 years ago, and it would be very, very much 
more expensive to duplicate the lines in the lower part of New York 
City than it was when they were put in, which I believe was about 
15 years ago. That, I think, must be obvious to anyone on reflec¬ 
tion. That condition may obtain in the vicinity of Adams and Clark 

Streets in Chicago. Whether it would obtain in St. Louis I would 

prefer to give some consideration to. 

The Chairman: How long have you been employed by the Gov¬ 
ernment? _ , , ,, 

Mr. Fry. In all very nearly 30 years. I have served under the 

Treasury, the Navy, and Commerce and Labor. _ 

The Chairman.* Would it be a practicable thing for you to make 

the investigation for the commission ? 


172 


PNEUMATIC-TUBE SYSTEM. 


Mr. Fry. I have many times, through the great courtesy of the 
department, and in one serious case with the commission of the then 
President, been granted leave of absence without pay. For nearly 
six years I was a member of the board in New York, the advisory 
board of engineers. During that time I drew no pay from the 
Treasury for such time as I devoted to State work. 

The Chairman. Have you any idea how long you would require 
to make an examination of the five cities ? 

Mr. Fry. I should say I could make a report on the present con¬ 
ditions, giving due weight to my present knowledge of the subject 
and my comparatively intimate knowledge of the conditions in Bos¬ 
ton and NeAv York, and some knowledge in Philadelphia and Chi¬ 
cago, within two weeks. 

The Chairman. It would not be a complete report, would it, for 
the commission? 

Mr. Fry. No; it would be a report as to the present condition of 
the system. I should have to depend on the cooperation of the 
municipal authorities in some of those cases, and I should have to 
require in each case the use of one or more men that I have been 
accustomed to employ in my own private work to assist me. 

The Chairman. Would you have to take a corps of assistants with 
you? 

Mr. Fry. No; I would not take a corps of assistants with me. I 
would take probably two men, and then, through the Society of 
Mechanical and Civil Engineers, I could depend on obtaining assist¬ 
ance from the men I know in all those cities, and in nearly all of 
those cities I have been in correspondence with men who have been 
accustomed to work with me, and in some cases for me. 

The Chairman. Do you believe you have a more intimate knowl¬ 
edge of the tubes, and for that reason are you in a position to make 
a more accurate examination than any outsider? 

Mr. Fry. Naturally, I do not want to appear egotistical, but I do 
not know of any engineer not connected with any of these various 
companies who has as large continuing knowledge as I have of them. 

Thereupon, at 12.45 o’clock p. m., the commission proceeded to in¬ 
formal discussion. 


Washington, D. C., Wednesday, January 29, 1918. 
The commission met at 11 o’clock a. m. 

Present: Senators Simon Guggenheim (chairman), Hoke Smith, 
Representatives F. L. Blackmon and Victor Murdock, and Hon. 
Joseph Stewart, Second Assistant Postmaster General. 

ADDITIONAL STATEMENT OF MR. ALFRED BROOKS FRY, CHIEF 
ENGINEER, UNITED STATES TREASURY SERVICE. 

The Chairman. At the last session of the commission I asked Mr. 
Fry to give us a statement of his credentials so that we might have 
them for the record. You have been working for the Government 
for several years, Mr. Fry, have you not? 

Mr. Fry. Since 1886. Mr. Chairman, I have prepared the follow¬ 
ing statement of my engineering record for the commission. 



PNEUMATIC-TUBE SYSTEM. 


173 


The record referred to is as follows: 


New York, January 28, 19IS. 

ENGINEERING RECORD OF ALFRED BROOKS FRY. 

Member American Society of Civil Engineers; member American Society of 
Mechanical Engineers; member American Society of Naval Engineers. Engi- 
neering student, apprentice machinist, fire department and marine engineer, 
1877 to 1SS6; assistant engineer, United States Treasury service, 1886; pro¬ 
moted to chief engineer same year. Since 1886 in charge of design, operation, 
construction, and repairs to steam, electric, and hydraulic plants in United 
States public buildings, with duty at United States Treasury Department, 
Washington, Boston, Chicago, San Francisco, Cincinnati, New Orleans, Pitts¬ 
burgh, Galveston, and other cities and ports; now serving as supervising chief 
engineer, and superintendent of construction, maintenance, and repairs, United 
States public buildings, ports of New York and Newark, N. J. Since 1903 also 
detailed for additional duty as chief engineer to the United States Immigration 
Service, Department of Commerce and Labor, and in addition to work else¬ 
where—of the enlargement and rebuilding of the United States immigrant sta¬ 
tion, New York, including the enlargement of the original Ellis Island, and 
the design and construction of the No. 2 Island and of the No. 3, or hospital, 
Island of said station. Served also as consulting engineer for construction 
of boarding and ferry vessesls for the United States Immigration Service, 
and also for water-supply pipe lines and submarine telephone and telegraph 
cables in connection with said stations; designated by Postmaster General of 
the United States in 1900 as a member of the commission to give consideration 
to the use of pneumatic tubes for transmission of mail, under act of Congress 
approved June 2, 1900; designated for similar service in 1908; engineer lieu¬ 
tenant, lieutenant commander, and commander in Naval Militia, Massachusetts 
and New York, 1893 to date; organized the First Engineer Division in Naval 
Militia of the United States; served as passed assistant engineer and acting 
chief engineer (lieutenant), United States Navy April 30 to September 13, 
1898, Spanish-American War; holds United States marine certificate as chief 
engineer of ocean steamers without limit of horsepower or tonnage; from 1904 
to 1911, inclusive, served, under Presidential permission and department leave 
without pay from the United States Treasury Department, as a member of the 
board of consulting engineers for the improvement of State canals, including 
the new barge canal system of the State of New York, for which work $115,- 
000,000 was voted by the State; has performed work as a consulting engineer 
for a number of inviduals and corporations, also for the Association for Protec¬ 
tion of the Adirondacks; now a member of the committee on inland waterways 
and water storage, Merchants’ Association of New York. 

ADDITIONAL MEMORANDA FOR COMMISSION, WITH SPECIFIC REFERENCE TO PNEU¬ 
MATIC-TUBE WORK IN CONNECTION WITH TRANSMISSION OF MAILS. 

I first took up work with reference to pneumatic tubes in 1894, and on April 
16 of that year made a report to Col. Coveny, postmaster of Boston, in connec¬ 
tion with the pneumatic transmission used by the Postal Telegraph system in 
Paris. This report gave a concise description of the system, and in substance 
stated that in a modified form it would probably be satisfactory under our 
working conditions in this country. 

Thereafter, in 1895 and 1896, I suggested certain possible routes for the pro¬ 
posed Boston postal pneumatic tubes, and these routes were afterwards sub¬ 
stantially followed, though I have sometimes thought it peculiar that the engi¬ 
neers of the pneumatic service company had not been able, with more time 
and better facilities than had I at my disposal, to have found less expensive 
locations for the lines referred to, some of the construction being very costly 
because of the narrow streets, heavy traffic, and other piping, conduits, etc., 
encountered. 

From time to time between 1897 and 1900 I was in conference with various 
post-office officials and with various engineers connected with the pneumatic- 
tube companies, having in view the possible application of the pneumatic mail 
tubes in the cities of Washington, Chicago, Philadelphia, St. Louis, Cincin- 


174 


PNEUMATIC-TUBE SYSTEM. 


nati, and Sail Francisco, and in 1900 I was designated to serve as an engineer 
member of the commission appointed by the Postmaster General, under act of 
Congress approved June 2, 1900, which commission, under the chairmanship of 
Mr. Theodore C. Search, president of the American Manufacturers’ Associa¬ 
tion, investigated the cost of construction, operation, and utility of all tube 
systems then offered for transmission of mails. The report of this commis¬ 
sion was embodied in the report of the Postmaster General made to Congress 
under date of January 4, 1901. 

In August, 1905, after conference with the postmaster of New York and 
other postal officials interested, and with the former president of the Ameri¬ 
can Pneumatic Service Co., I made a study and report on certain proposed 
extensions to the postal pneumatic-tube service in New York City, and the 
recommendations in that report and routes suggested have been very largely 
followed in subsequent construction and extensions authorized. 

In 1908 I served as a consulting member of the commission appointed by the 
Postmaster General to inquire into the desirability and feasibility of Govern¬ 
ment ownership and operation of pneumatic-tube service in the large cities. 
See report transmitted to Congress by the Postmaster General on or about 
December 15, 1908. Thereafter, when Congress made a special appropriation 
for a pneumatic-tube line to be owned by the Government and built between 
the United States customhouse and United States appraisers’ warehouse, New 
York City, I made the original draft of the specifications and laid out the 
original route which was afterwards followed. When this work was contracted 
for by the Supervising Architect’s Office, United States Treasury Department, 
I had charge of the construction of said line. Since its completion, in the 
latter part of 1910, its operation has been under my direction. 

This system consists of a double line of 8-inch tube with a total tube length 
of about 4£ miles. It is equipped with an electric compressor for service on one 
leg and a steam-driven compressor for service on the other, this equipment 
having been selected with reference to comparative cost keeping as well as to 
suit the operating conditions of the plants at the customhouse and the ap¬ 
praisers’ warehouse, respectively, the former being an electrically operated 
plant, and the latter having most of its mechanism operated by steam, owing 
to the peculiar service demanded in this huge building which contains the 
largest steam-elevator equipment of any similar structure in the United States. 

It may be added that there has been no interruption to the tube service 
between the customhouse and the appraisers’ warehouse since the same was 
started. The operating cost is given in attached communications. 

It should also be added that the plants supplying power to the pneumatic 
tubes of the postal system located in the United States post-office building, 
New York, and United States post-office building, Brooklyn, are under my 
direction. 

Alfred Brooks Fry. 

You asked me also, Mr. Chairman, to prepare a memorandum of 
what I thought might be the outline and principles to be followed 
in making an investigation of this subject, and I have prepared 
such a memorandum. 

The Chairman. I wish you would kindly explain the matter 
briefly to the commission. 

Mr. Fry. This is a memorandum which I prepared concerning the 
proposed report on systems of pneumatic-tube transmission for mail 
matter in the cities of St. Louis, Chicago, Philadelphia, New York, 
and Boston. It may be proper for me to say that in connection 
with my work for the Treasury Department, and chiefly in relation 
to United States public buildings, I have naturally had a great deal 
of experience with regard to tubes, since we in many cases generate 
the power used by them; and I have also been a member of both 
commissions designated by the Postmaster General to investigate the 
subject. 


PNEUMATIC-TUBE SYSTEM. 


175 


The memorandum referred to by Mr. Fry is as follows: 

MEMORANDA CONCERNING PROPOSED REPORT ON SYSTEMS OF PNEUMATIC-TUBE TRANS¬ 
MISSION FOR MAIL MATTER IN THE CITIES OF ST. LOUIS, CHICAGO, PHILADELPHIA, 

NEW YORK, AND BOSTON. 

It is assumed that the practical value of the pneumatic mail tubes is no 
longer debatable, and granting this the matter would seem to divide itself into 
three heads: 

(1) A history and description of the systems that have been installed and 
are in present use for purpose named in said cities, together with a statement 
as to the probable cost of installation of said systems. 

(2) A report on the present going condition of systems referred to in the 
cities named, i. e., as to their general physical condition and mechanical 
efficiency. 

(3) Estimates as to cost of duplication of these present systems in use by 
the Post Office Department in aforesaid cities, coupled with, if desirable, a 
statement of probable costs of such additions as the post-office authorities may 
believe essential. 

(1) History and description of the tube systems. —With reference to the time, 
expense, etc., of making reports named, it may be remarked that the history 
and description of the present systems can be prepared without much difficulty. 
It is largely a matter of compilation, using as a basis the report of the Post¬ 
master General to Congress made January 4, 1901, also report prepared under 
direction of the Postmaster General in 1908. Moreover, information can 
doubtless be obtained from the American Pneumatic Service Co., which, as I 
understand it, took over most, if not all, of the various independent companies 
that originally installed these tubes; from the postmasters in the larger 
cities; and I have considerable miscellaneous data in my own office. 

The compilation could be well made while the information to be sought under 
heads Nos. 2 and 3 was being obtained and tabulated; but it would seem that 
in view of what is already in the various printed records the commission 
would desire to brief this history or description as much as practicable. 

As regards original construction costs, it would be difficult at this late day 
to analyze many of them, though it would not be very difficult to form a 
judgment as to whether various alleged amounts were or were not padded by 
applying common sense and experience in similar work in various cities where 
said tubes were installed. 

It must always be borne in mind that in doing work in or under the streets 
of the larger American cities there are always expenses involved that are 
difficult to tabulate or in many cases even to record as items; such as 
gratuities paid abutters or for extra inspection service and the like; and it is 
known that in some cases these costs have been exceedingly heavy. Besides, 
it must be remembered that the eariler pneumatic tube lines were more or less 
experimental and doubtless much money was spent in apparatus or con¬ 
struction that was afterwards replaced. Hence, claims as to original con¬ 
struction costs, however interesting, have chiefly what may be termed a 
moral value. The cost, if any, of municipal franchises will have to be con¬ 
sidered separately in each case. 

(2) Present operating and physical condition of tube systems. —I believe a 
report on the present going condition of the tube systems referred to in the 
cities named could be prepared in, say, about two weeks, unless it is desired 
to make an examination of the condition of the underground tubes themselves. 
Given the adequate help of experienced machinists and engineers and working 
without regard to hours and during a period of the time simultaneously in 
the cities heretofore named, a careful examination could be made of the power 
generating apparatus, of the receiving and transmitting systems, of the con¬ 
dition of the carriers; and perhaps time would allow the taking out for examina¬ 
tion and subsequent replacement in the tube line of one or more bends in each 
line that naturally receive the greatest wear. At the same time there could 
also be made an examination of any trap and drip systems where failures 
are likely to cause trouble. 

A physical examination of all the tube lines would, of course, be very diffi¬ 
cult, especially at this season of the year, in any of the northern or western 
cities. Many* municipalities will not permit street excavations during the 
winter and early spring months, and heavy frosts or heavy snowstorms would 


176 


PNEUMATIC-TUBE SYSTEM. 


obviously block this work, especially as it would have to be undertaken with 
the cooperation of the post-office authorities, and any undue interruption to 
regular use of pneumatic-tube systems would have to be avoided. 

I do think, if time and season permitted, it would be desirable to take 
out for observation some of the sections of the older tubes, notably, let us 
say, in Philadelphia, Boston, or New York; but writing very frankly it seems 
to me that any general physical examination of these tube lines would be 
impracticable. For the most part it would mean digging trenches, similar to 
those required for new construction work, in busy streets, often passing through 
the heart of our largest cities. And there would be no particular guaranty 
that because 100 feet of any given line was absolutely sound the next 100 
feet would be in the same condition. Whether we like it or not, again writing 
frankly, it seems to me we have got to be guided in our opinion as to the 
condition of these underground tubes by the appearance of such samples as 
it may be practicable to remove and inspect. The records of the street de¬ 
partments in the cities concerned should show any excavation that has been 
performed since tubes were laid for the purpose of installing new piping 
conduits, subsequent structures, etc., near said post-office tubes. Inquiry 
would indicate whether or no the pneumatic tubes had probably been injured 
or disturbed; and the records of the various post offices would indicate whether 
or no there had been troubles due to tube stoppages, and, if so, the cause 
and duration of same; and finally, the light of experience and common sense 
would aid in determining tube condition. For example, if one were buying 
a going waterworks plant, and found on investigation that w T ater takers made 
no complaints of insufficient quantities; that there appeared to be no settle¬ 
ments in street surfaces from leakage, and that there was a reasonably close 
agreement between the water pumped and the estimated or recorded water used, 
one could, I think, fairly assume that the underground service system of such 
a water company was tight and in good condition, especially if age and char¬ 
acter of constructiton were known. With my present light, it seems to me that, 
having exhausted the sources of information that I have inferred, we must 
largely assume the condition of the underground pneumatic tubes. 

Given freedom from electrolytic action, chemical attack, or mehcanical in¬ 
jury, we know that cast-iron pipe, with the original skin unbroken on the out¬ 
side and properly coated, lasts many years. Owing to tbe presence of more or 
less moisture, quantities of vaseline and grease used for lubrication, and the 
fact that most of the wear is taken up on the gaskets or packing rings of the 
pneumatic carriers, the normal internal wear in the tubes should not be great. 
Where we have examined the customhouse appraisers’ warehouse tube in New 
York, said wear has been minute. 

It is, of course, true that where mains have been laid in soil saturated with 
salt water or been exposed to the possibility of settlement, electrolysis, or 
even undue internal wear, consideration should be given to attendant circum¬ 
stances. But beyond what I have outlined under this head, i. e., tube-line in¬ 
spection, I do not feel that we can profitably go, even if a large sum of money 
and an indefinite period of time were at our disposal. 

(3) Estimates of cost of duplications and extensions .—Estimates of the cost 
of duplication of the various systems can, I believe, be made up within 30 days, 
given, always, sufficient competent engineering assistance. These estimates can 
be based to some extent at least upon estimates that have been previously pre¬ 
pared by the pneumatic tube companies and by the post-office oflicials, checked 
by independent judgment and experience, and by inquiry of municipal oflicials 
and local engineers as to cost of street excavation, back filling, replacement of 
pavements or other surfaces, etc., and taking as our guide contracts that have 
been recently performed. In practically every city now there are good systems 
of cost-keeping and ample records of the expense of performance of work similar 
to the character we are considering, both by public officials and private parties. 

For tbe transmitting and receiving apparatus I presume we should have to 
depend upon the properly checked estimates of the inventors and manufacturers 
of same. The cost of the units for furnishing the pneumatic power, whether in 
the shape of blowers, steam or engine driven, can be easily determined. 

The cost of the cast-iron pipe which enters into the tube-line construction is 
a matter of daily public record, and the costs of boring and laying are not 
mysteries. 

As regards the cost of any proposed extensions I should get a description of 
those the post-office authorities deem wise, and, applying common sense, expe¬ 
rience, and knowledge obtainable locally, proceed to estimate the cost of pro¬ 
posed extensions in the same way we would the duplication of original lines. 


PNEUMATIC-TUBE SYSTEM. 177 

The Chairman. How long do you figure, Mr. Fry, that it would 
take to file a report of the nature you refer to? 

Mr. Fry. According to the extent that you deem it expedient or 
desirable to go into the physical condition of the tubes themselves. 
To make an inspection of a few samples for each line of the physical 
condition of the operating apparatus, the carriers, and the receiving 
and dispatching apparatus, I would work simultaneously in all the 
cities. That, I believe, can be done in two weeks. To determine the 
cost of duplicating the lines would require a somewhat longer period. 
There is a mass of information available, but it has to be gotten from 
various sources and brought together. 

The Chairman. You said that you might require some assistance. 
Can you give the commission the number of people required and 
the expense that would be involved? 

Mr. Fry. I estimated that I should put one man on the work in 
Boston, and I should put another man on the work in Philadelphia. 
I should associate with myself one man in New York. In St. Louis 
I should start a man who has previously worked for me, and I 
should communicate with some engineer in Chicago—Mr. Cooley, if 
I could get hold of him—and start him there. Then I would take up 
the situation in New York, and if I found it deficient I would have 
some additional work done there if necessary. I would then myself 
proceed to St. Louis and Chicago and go over the information 
obtained there. 

The Chairman. These parties whom you might employ would 
have no connection, would they, with these going concerns? 

Mr. Fry. No; they would have no connection with them whatever. 
As a matter of fact, three of them are already in the Government 
service. They are men who have had no leave of absence this year, 
and I am quite sure I could obtain leave for them without pay. 

Senator Smith. What do you think the entire investigation will 
cost us ? 

Mr. Fry. Somewhere between three and four thousand dollars. 

The Chairman. Including your own commission ? 

Mr. Fry. Yes, sir. 

The Chairman. How much would the men get per day ? 

Mr. Fry. From twenty to twenty-five dollars per day. They will 
have to lose their Government salary while they are doing this work, 
and, of course, that does not seem fair. 

The matter of using a larger tube than an 8-inch tube presents 
a considerable number of difficulties, if the transmission is to be not 
trolley or little subway transmission but is to be tube transmission. 
Obviously, in many of these narrow streets the ability to get in a 
tube of considerable diameter becomes questionable. In other in¬ 
stances the necessity of turning corners in narrow streets more or less 
sharply becomes a very difficult proposition. 

Senator Smith. The larger material you are passing through the 
tube the larger your curve has to be ? 

Mr. Fry. Yes, sir. Then the handling of the very heavy carrier 
becomes a matter of serious physical difficulty and it greatly slows 
the operation of the tube. The American Pneumatic Service Co. 
put in a 10-inch tube a number of years ago in Boston, using a type 

78419—13-12 



178 


PNEUMATIC-TUBE SYSTEM. 


of wheel carrier, and I understand that tube has never been a com¬ 
mercial success. The practical difficulties they encountered in their 
operation nullified the advantages that theoretically the larger car¬ 
riers got. There is considerable information on that subject in the 
previous reports. Our original commission went into that matter 
very fully and examined systems that used a tube as large as 24 
inches. I think if you are going to undertake the operation of tubes 
of that size that it has got to be approached more in the line of the 
Chicago little subways, which, as you know, were not commercially 
successful. 

Senator Smith. You think that the present 8-inch tube which we 
have in New York is probably as feasible as a larger tube? 

Mr. Fry. I regret to say that from my present knowledge I am dis¬ 
posed to think so. I consider that it is possible that a 10-inch tube 
might be installed, but the cost of construction would be considerably 
increased, the cost of maintenance would probably be considerably 
increased, and there would remain always this matter of the difficulty 
in getting into given buildings and around given points. I doubt if 
even you gentlemen, with the very great fund of general information 
that you get in Congress, are aware of the increasing structural diffi¬ 
culties of carrying work through the streets in large cities. In this 
country it is rendered additionally difficult by the fact that prac¬ 
tically no city, except possibly Philadelphia, has any maps that are 
worth very much. Of course we have tried to contribute to that 
knowledge as far as we can. There is a map that was prepared in 
my own office after we finished the construction of the appraisers* 
warehouse tube, and that shows not only the plan but the grade of 
the tubes and the position of the manholes. 

Mr. Fry also submitted to the commission a copy of a specification 
for double pneumatic-tube service constructed in 1910 between the 
United States customhouse and the United States appraiser’s ware¬ 
house in New York City, the said system being the property of the 
United States; a plan showing the location of the tubes of said sys¬ 
tem; certain data concerning same; a copy of a letter from the 
supervising chief engineer, United States public buildings, New 
York, addressed to the Supervising Architect, Treasury Department, 
under date of June 4, 1912, transmitting letters from the appraiser 
of the port and the office of the collector of the port as to the useful¬ 
ness of said system; and also a memorandum giving recent contract 
prices paid by a private engineering firm in New York for certain 
trench work in the streets of the Borough of Manhattan; all of which 
are as follows: 

[Treasury Department. Office of the Supervising Architect.] 

Specification and Proposal Sheet for Double Pneumatic-Tube Service Be¬ 
tween the United States Customhouse and United States Appraisers’ 

Warehouse, New York City, N. Y. 


Treasury Department, 

Office of the Supervising Architect, 

Washington, D. C., January 26, 1910. 

Sealed proposals will be received at this office until 3 o’clock p. m. on the 23d 
day of February, 1910, then opened, for the installation of a double pneumatic- 
tube service between the United States customhouse and the United States 


PNEUMATIC-TUBE SYSTEM. 


179 


appraisers warehouse, New York, N. Y., in accordance with drawings and speci¬ 
fication, copies of which may be had at this office or at the office of the chief 
engineer and superintendent United States public buildings, New York City, 
N. Y., at the discretion of the Supervising Architect. 

James Knox Taylor, 

_ . „ Supervising Architect. 

L. A. S. N. S. T. 

J. E. P. G. E. It. 

N. B.—Bidders are required to return the drawings and specifications without 
marks, notes, or other mutilations thereon. 

the Government frank sent to intending bidders is to be used for the return 
of the drawings and specifications, and for no other purpose. 

SPECIFICATION FOR DOUBLE PNEUMATIC-TUBE SERVICE BETWEEN THE UNITED STATES 

CUSTOMHOUSE AND THE UNITED STATES APPRAISERS’ WAREHOUSE, NEW YORK 

CITY, N. Y. 

Treasury Department, 

Office of the Supervising Architect. 

GENERAL CONDITIONS. 

1. Form of proposal and signature. —Proposal must be made on the blank 
form hereto attached, inclosed in sealed envelope, marked proposal with title 
of building as given above, and addressed to the Supervising Architect, stating 
in writing and figures (without interlineation, alteration, or erasure) the sum 
of money for which the bidder proposes to supply the materials and perform 
the work required by the drawings and this specification and the time within 
which he proposes to complete the work and the unit prices called for in 
proposal sheet. The proposal must be signed with the full name and address 
of the bidder; if a copartnership, the copartnership name by a member of the 
firm, with the names and addresses in full of each member; and if a corpora¬ 
tion. by an officer in the corporate name, with the corporate seal attached to 
such signature. No telegraphic proposals or telegraphic modifications of pro¬ 
posals will be considered. Proposals received after the time advertised for the 
opening will be return unopened. If proposal is sent by registered mail, allow¬ 
ance should be made for the additional time required for such transmission. 

2. Certified check.— Each bidder must submit with his proposal a certified 
check, in a sum equal to 10 per cent of the amount of such proposal, drawn to 
the order of the Treasurer of the United States, and the proceeds of said 
check shall become the property of the United States, if for any reason what¬ 
ever the bidder after the opening of the bids withdraws from the competition 
or refuses to execute the contract and bond required in the event of said con¬ 
tract being awarded to him. Copy of contract and bond will be furnished the 
contractor after the approval of his bond. Bidders are expressly notified that 
the checks of the two lowest bidders will be held uncollected and at their 
risk until the bond required shall have been approved by the Secretary of the 
Treasury. 

3. Subcontractors. —No subcontractor or other person furnishing material or 
labor to the contractor will be recognized, nor will this department be responsi¬ 
ble in any way for the claims of such persons beyond taking a bond, ns re¬ 
quired by the net of Congress approved August 13, 1894, which provides in 
substance that when a formal contract is let for the erection or repair of a 
public building, etc., the contractor before commencing such work shall furnish 
the usual penal bond, with good and sufficient sureties, with the additional 
obligation that such contractor will make prompt payment to all persons 
furnishing him labor or materials used in the prosecution of the work. Persons 
so furnishing materials or labor have a right of action on said bond in the 
name of the United States for their use. No formal contract is usually let, 
however, and no bond taken where the amount involved is less than $2,000. 

4. Parties in interest. —No Member of or Delegate to Congress and no officer 
of the Treasury Department, superintendent, inspector, clerk, employee, or 
other person in any manner connected with the office of the Supervising Archi¬ 
tect shall be interested, either directly or indirectly, in the contract or work 
herein provided for or be entitled to any benefit derived therefrom, and any 
violation of this understanding shall work a forfeiture of all moneys which 
may become due to the successful bidder. 


180 


PNEUMATIC-TUBE SYSTEM. 


5. Rights reserved .—The material proposed to be used, time for completion of 
work, and the competency and responsibility of bidders will receive considera¬ 
tion before award of contract. 

The Treasury Department reserves the right to accept any part or parts of 
the proposal made at the iirices included in same; also to waive any informali¬ 
ties in and to reject any and all proposals and to require the contractor to 
discontinue the services of any workman employed on the work who is unskill¬ 
ful or otherwise objectionable. 

6. Form of contract .—The contract which the bidder agrees to enter into 
shall be in the form adopted and in use in the Office of the Supervising Archi¬ 
tect, blank forms of which can be inspected at said office and will be furnished 
upon request being made to parties proposing to submit bids. In case of the 
abrogation of the contract, whether by reason of the default of the contractor, 
his bankruptcy, or other cause, the Supervising Architect, acting for both 
parties, shall have the right to determine the valuation of all work performed 
and all materials furnished in place in connection with the contract and of all 
material, machinery, tools, etc., upon the site of the building taken possession 
of by the Government, and his decision shall be final. 

7. Modifications .—The department reserves the right to make any additions 
to, omissions from, or changes in, or substitutions for the work or material 
called for by the drawings and specification without notice to the surety or 
sureties on the bond given to secure satisfactory compliance with the terms of 
the contract; and the department further reserves the right to demand addi¬ 
tional security when additions are made, if in its judgment such security is 
required. The unit prices called for in the proposal sheet shall be used as the 
basis of value of such additions, omissions, or changes, if they are deemed 
reasonable by the Supervising Architect. If deemed unreasonable, or if none 
applicable are required or given, and no agreement can be reached by the 
Supervising Architect and the contractor as to the reasonable value of the 
work, then the Supervising Architect shall have the right to fix the value of 
such additions, omissions, or changes, and no claim for damages on account of 
such change or for anticipated profits shall be allowed. 

8. Delays .—Each bidder must submit his proposal with the distinct under¬ 
standing that, in case of its acceptance, time for the completion of the work 
shall be considered as of the essence of the contract and that for the cost of all 
extra inspection, and for all amounts paid for rents, salaries of contingent 
force, and other expenses entailed upon the Government by delay in complet¬ 
ing the contract, the United States shall be entitled to the fixed sum of twenty- 
five dollars ($25) as liquidated damages, computed, estimated, and agreed 
upon, for each and every day’s delay not caused by the United States; pro¬ 
vided, however, that the collection of said sum may, in the discretion of the 
Secretary, be waived in whole or in part; and that the contractor is to be 
entitled to one day, in addition to said stipulated time, for each day’s delay 
that may be caused by the Government, provided that a written claim there¬ 
for is presented by the contractor within ten days of the occurrence of such 
delays; provided further, that no claims shall be made or allowed to the con¬ 
tractor for any damages which may arise out of any delay caused by the 
United States. 

The department, acting for the United States, reserves the right to suspend 
any portion of the work embraced in the contract whenever, in its opinion, 
it would be inexpedient to carry on said work. 

NOTICE TO SURETIES. 

9. The atention of the sureties is particularly directed to the following 
conditions: 

The final inspection and acceptance of the work shown by the drawings and 
specifications forming a part of the contract shall not be binding or con¬ 
clusive upon the United States if it shall subsequently appear that the con¬ 
tractor has willfully or fraudulently or through coliusion with the repre¬ 
sentative of this department in charge of the work supplied inferior materials 
or workmanship, or has departed from the terms of his contract. In any 
such case the United States shall have the right, nothwitlistanding such final 
acceptance and payment, to cause the work to be properly performed and 
satisfactory material supplied to such extent as in the opinion of the Super¬ 
vising Architect may be necessary to finish the work in accordance with 
the drawings and specifications therefor at the cost and expense of the con- 


PNEUMATIC-TUBE SYSTEM. 


181 


tractor and the sureties on liis bond, and shall have the right to recover against 
the contractor and his sureties the cost of such work, together with such other 
damages as the United States may suffer because of the default of the con¬ 
tractor in the premises, the same as though such acceptance and final pay¬ 
ment had not been made. 

Attention is called to section 21 of the act approved June 6, 1902, which 
provides as follows: 

“ That in all contracts entered into with the United States, after the date 
of the approval of this act, for the construction or repair of any public building 
or public work under the control of the Treasury Department, a stipulation 
shall be inserted for liquidated damages for delay; and the Secretary of the 
Treasury is hereby authorized and empowered to remit the whole or any 
part of such damages as in his discretion may be just and equitable; and in 
all suits hereafter commenced on any such contracts or on any bond in con¬ 
nection therewith it shall not be necessary for the United States, whether 
plaintiff or defendant, to prove actual or specific damages sustained by the 
Government by reason of delays, but such stipulation for liquidated damages 
shall be conclusive and binding upon all parties.” 

10. Eight-hour law .—The attention of bidders is called to the act of Con¬ 
gress approved August 1, 1892, limiting the hours of daily service of laborers 
and mechanics employed upon public works of the United States to eight 
hours in any one calendar day. 

Attention is directed to the following executive orders: 

Executive Order No. 1. 

“11. Whereas by an act of Congress which received executive approval on 
February 23, 1887, all officers or agents of the United States were, as a matter 
of public policy, forbidden, under appropriate penalties, to hire or contract 
out the labor of any criminal who might thereafter be confined in any prison, 
jail, or other place of incarceration for the violation of any laws of the 
Government of the United States of America. 

“ It is hereby ordered that all contracts which shall thereafter be entered 
into by officers or agents of the United States involving the employment of 
labor in the States composing the Union, or the Territories of the United 
States contiguous thereto, shall, unless otherwise provided by law, contain 
a stipulation forbidding, in the performance of such contracts, the employment 
of persons undergoing sentences of imprisonment at hard labor which have 
been imposed by courts of the several States, Territories, or municipalities 
having criminal jurisdiction. 

Executive Order No. 2. 

“ I. All departments of the Government under the supervision of which public 
works are being constructed are hereby directed to notify the representatives 
stationed at such public works to report at once to their respective departments 
all cases in which contractors or subcontractors on works now under construc¬ 
tion have required or permitted laborers or mechanics in their employ to work 
over eight hours in any one calendar day. 

“ II. All Government representatives in charge of construction of public 
works are further directed that it is a part of their duty to report to their 
respective departments each and every case in which laborers or mechanics are 
required or permitted to work over eight hours a day on the works under super¬ 
vision of such Government representatives. Wherever reports showing work 
in excess of eight hours a day are received by any department they are to be 
referred to the Department of Justice for appropriate action. 

“ III. All departments of the Government under the supervision of which 
public works are being constructed by contract are further directed to have 
their respective legal officers prepare and forward to the President a list of 
such statutes and Executive orders as have a direct bearing on contracts for 
the construction of public works, and with which bidders on such works should 
be made acquainted.” 

12. Proposals .—Proposals as hereinbefore called for must be based on pneu¬ 
matic tube system drawings Nos. P. T. 1 and P. T. 2 and the specification, and 
must include everything necessary to complete the work in every detail. 

The specification and the drawings are to be interpreted together and all 
work drawn, but not specified, or specified and not drawn, or not included in 


182 


PNEUMATIC-TUBE SYSTEM. 




either, but necessary to the satisfactory completion of the pneumatic-tube sys¬ 
tem, must be included in the proposal. No interpretation of the drawings and 
specification will be made prior to the award of the contract. 

13. Visit the buildings, streets, and other localities. —Bidders must visit the 
buildings, streets, and other localities, compare the drawings and specification, 
and examine the structures, sewers, electric conduits, water piping, etc., in 
place; inform themselves as to all the conditions under which the work shall 
be installed, and include in their proposals all the items of labor and materials 
mentioned, shown, or necessarily implied, that may be required in the full in¬ 
tent and meaning of the drawings and specification, whether each item be sepa¬ 
rately mentioned or not. Information relative to existing structures adjacent 
to, on, or beneath streets and other locations where proposed pneumatic tubes 
and conduit are to be run can be obtained at the offices of the president of the 
Borough of Manhattan, bureau of sewers, the office of the commissioner of 
water supply, gas, and electricity, or from the Consolidated Gas Company, or 
other gas companies; the New York Edison Company, or other electric com¬ 
panies; the New York Steam Company; and the various surface, subway, and 
tunnel transportation companies. No extra compensation will be allowed for 
the neglect or oversight on the part of the bidder to thoroughly inform himself 
of all the conditions that may exist along the proposed line of tubes. 

14. Measurements. —The scale proportions given on the drawings are in 
accordance with the general plans, but as variations therefrom may be found 
the contractor must make all of his own measurements, surveys, etc., and he 
will be held responsible for the proper fitting of his work. He must check and 
verify the drawings, and will be held responsible for any errors which could 
have been avoided by such checking. 

The attention of bidders is specifically called to the various structures, con¬ 
duits, piping, etc., as well as to the sewers, that will be encountered in construc¬ 
tion of work covered by these specifications. 

The matter of noninterference with the sewerage system of the city of New 
York requires special consideration because of the number of sewers crossing 
practically at right angles the proposed and necessary line for pneumatic tubes 
required by these specifications. 

The following table gives the distance between the top of the sewers and the 
street surface over same serving streets crossing or intersecting West Street 
between Battery Place and Christopher Street. 

Especial attention is called to the fact that the Government assumes no re¬ 
sponsibility for the following dimensions, as same are for guidance of bidders, 

and dimensions must be checked by them: 

#»• 

Washington Street, from Battery Place to Christopher Street. 


Feet. 


Battery Place_4. 8 

Morris Street_3. 0 

Rector Street-3. 7 

Carlisle Street_2.5 

Albany Street- 4. 5 

Cedar Street_4. 2 

Liberty Street_3. 5 

Cortlandt Street_3. 0 

Dey Street_2. 3 

Fulton Street_3. 2 

Yesey Street_2.0 

Barclay Street-2.0 

Park Place_4. 0 

Murray Street-3. 2 

Warren Street-2. 6 

Chambers Street-2. 0 

Reade Street_4. 0 

Duane Street_8. 5 

Jay Street-6.3 


Feet. 

Harrison Street_6. 6 

Franklin Street_7. 6 

North Moore Street_6. 5 

Beach Street_5.4 

Hubert Street_5. 7 

Laight Street_6. 5 

Vestry Street_4. 4 

Desbrosses Street_4. 7 

Watts Street_6. 9 

Canal Street_ 1 . 2 

Spring Street-No sewers. 

Charlton Street_4. 0 

King Street_5. 5 

Houston Street_4. 7 

Clarkson Street_4. 4 

Leroy Street_6. 9 

Morton Street_6.4 

Barrow Street_6. 5 

Christopher Street_8. 5 


15. Time to complete .—Bidders must state in their proposal the date (month, 
day, and year) when they will have the work completed. In naming the time 
for the completion of the entire work, an allowance of ten days must be made 
for the award of the contract, with a further allowance of ten days for the 
approval of the bond. 









































PNEUMATIC-TUBE SYSTEM. 


183 


, AU ° wanc v l or delays by the Government .—Should the award of the con¬ 
tract be delayed belong the ten days allowed, the date named by the bidder will 
be correspondingly advanced by this office. Should conditions arise which 
would cause the work under this contract to be stopped, or should the Super¬ 
vising Architect suspend the work for any cause for which the contractor is 
not responsible, allowance for such delays shall be made in accordance with 
paragraph “Delays” of this specification. 

17. Time and manner of performing the ivork .—The contractor must consult 
with the chief engineer and superintendent of public buildings (under whose 
charge the installation of the system will be) immediately on the award of the 
contract, as to the time and manner of performing the 'work, which must be 
prosecuted at such times and in such a manner as to interfere as little as pos¬ 
sible with the service in the building, and the use of the streets, sewers, gas, 
electric service, heating service, transportation companies, etc., and to insure 
the operation of the plants in both buildings at all times. 

Any work required to be done after regular workng hours, on Sundays or 

legal holidays, must be performed without additional expense to the Govern¬ 
ment. 

In this connection the attention of bidders is called to the following excerpts 
from the form of agreement between the city of New York and the U. S. Treas¬ 
ury Department, under which a franchise has been obtained for the laying of 
two pneumatic tubes and one tube for signaling wires in connection therewth, 
as covered by this specification, and the successful bidder will be required to 
comply with the same so far as his work is concerned. 


18. Liability for costs. —The contractor shall pay the entire cost of: 

(Paragraph 5 b.) “The protection of all surface and subsurface structures 
which shall in any way he disturbed by the construction of the tubes.” 

(c) “All changes in sewers or other subsurface structures made necessary by 
the construction of the tubes, including the laying or relaying of the pipes, con¬ 
duits, sewers, or other structures.” 

(d) “ The replacing or restoring of the pavement or other surface which may 
be disturbed during the construction of said tubes.” 

( e ) “The ordinary inspection of all work during the construction * * * 

of the tubes as herein provided, 'which may be required by the president of the 
Borough of Manhattan, the commissioner of water supply, gas, and electricity, 
and the commissioner of parks.” 

Permits and drawings. — (Paragraph 6.) “Before the construction shall be 
begun the contractor shall obtain permits to do the work from the president of 
the Borough of Manhattan, from the commissioner of water supply, gas, and 
electricity, and the commissioner of parks. The contractor shall perform all the 
duties which may be imposed upon him by these officials as conditions of such 
permits, provided such conditions aj*e not inconsistent with the provisions of 
this contract. 

“ The contractor shall submit to these officials working plans which shall in¬ 
clude and show in detail the method of construction of such tubes, and the mode 
of protection or change in all subsurface structures required by the construc¬ 
tion of the tubes. For the purpose of obtaining data upon which to base such 
working plans, the contractor shall, before starting any work under this resolu¬ 
tion, and in order to properly locate the subsurface structures, make test pits 
where required, under the direction of the above-named municipal authorities.” 

[Note. —The drawings (which must be in quadruplicate) above called for 
must be submitted through the Supervising Architect.] 

Liability for damages. — (Paragraph 10). “The contractor shall assume and 
become liable for all damages to persons or property, including the street and 
subsurface structures therein, by reason of the construction of said tubes, said 
liability to be fully covered by the bond of said contractor, and it is a condition 
of this consent that neither the city of New York ” [nor the United States] 
“ assumes any liability to either person or property for any damages cause by 
the construction of said tubes.” 

Time that trenches may remain open. — (Paragraph 12.) * * *. “No. street 

or other public place which shall be opened for the purpose of this construc¬ 
tion or for any repairs subsequent to the completion of such construction shall 
be kept open for a longer period than fourteen (14) days on any one block.” 

Notice to municipal authorities. — (Paragraph 14.) The contractor shall give 
notice [through the chief engineer and superintendent of repairs] to the presi¬ 
dent of the Borough of Manhattan, the commissioner of water supply, gas, and 
electricity, and the commissioner of park, in writing, of his intention to begin 


184 


PNEUMATIC-TUBE SYSTEM. 


the construction of the work hereby authorized, at least forty-eight hours before 
such construction commences.” 

(Paragraph 15.) “Where the municipal authorities shall so direct no sub¬ 
surface structure shall be removed, relocated, or otherwise disturbed by the 
construction of these tubes, and such tubes shall be constructed over, under, or 
around such subsurface structures in such a manner as shall be consented to or 
prescribed by said municipal authorities. If at any time unforeseen obstacles 
shall be encountered, the contractor shall immediately notify the municipal 
authorities herein referred to, viz, the president of the Bourough of Manhattan 
and the commissioner of water supply, gas, and electricity [through the chief 
engineer and superintendent of public buildings], and, where a public park or 
other property under his jurisdiction if affected, the commissioner of parks; 
and any decision which said authorities shall come to in regard to such matter 
and any direction which shall be made as to the course to be pursued, shall 
be adhered to and carried out by the contractor.” 

Definition of the words “tube” or “tubes.” —(Paragraph 17.) “The words 
‘ tube ’ or ‘ tubes ’ in this resolution shall be deemed to and shall include the 
manholes, underground supports, and drainage system for such tubes as herein 
authorized.” 

19. Kind and quality of material. —All materials and appliances furnished 
must be in strict accordance with the specification requirement in each case and 
of the best quality and grade. 

Bidders must furnish on the proposal sheet the information required thereby, 
as to name and address of manufacturers and catalogue number or trade name 
of appliances and materials they propose to supply, and where required by 
proposal sheet they must give the names of three different manufacturers of the 
material, appliance, or fixture. The department reserves the right to select 
any one of the makes named, which selection is without prejudice to goods of 
other manufacturers named, and must not be otherwise construed. 

It is the intention of this office to install a pneumatic-tube service and acces¬ 
sories which are the result of the best experience in this line of work, and in 
the consideration of proposals preference wil be given, other things being ap¬ 
proximately equal, to the proposal of bidders who have had the requisite ex¬ 
perience. 

Each bidder shall name in the proposal sheet where he has such apparatus 
as called for in operation, and for how long. 

Consideration will not be given to proposals from bidders who have not 
had their apparatus in continuous operation by bona fide users for at least 
one year previous to the date of this specification. 

In the event the successful bidder fails to comply with any of the require¬ 
ments of the proposal sheet and relative to appliances and material, i. e.— 

(1) Fails to fill out the proposal sheet with names of manufacturers, etc., 
of material, etc., which he desires to use in the work; 

(2) Fails to give the names of three different manufacturers where required 
on proposal sheet, even if the one or two makes comply with the specification; 

(3) Names materials, appliances, or fixtures not strictly in accordance with 
specification requirements in regard thereto, or which are not of best quality 
and grade—the Supervising Architect reserves the right to reject any or all 
the materials, apparatus, and fixtures named by said bidder and to select those 
to be used in the work; which selection shall be final and binding upon the 
contractor, who must install for the proposal price the appliances, materials, 
and fixtures so selected. 

20. Approval of material, etc. —The approval by the department of any ma¬ 
terial, appliance, or fixture named on the proposal sheet is to be understood 
as an approval of same only upon its conformity with the specification require¬ 
ments in regard thereto, and not as an absolute acceptance of the article. 

21. Samples. —The contractor must furnish, for the approval of the Super¬ 
vising Architect, all the samples hereinafter called for, and also, if required 
by the Supervising Architect, samples of all or any of the appliances, materials, 
and fixtures he proposes to use, and must pay all shipping charges on samples. 
No materials, appliances, or fixtures of which samples are required to be sub¬ 
mitted for approval will be permitted to be placed in the buildings or in the 
trenches between the same until such approval has been given by the Super¬ 
vising Architect. 

Samples must be accompanied by a letter of transmittal from the contractor 
and each sample must be marked with the name of the contractor and the name 
of the building or buildings to which it relates. Approved samples, if prop- 


PNEUMATIC-TUBE SYSTEM. 


185 


erly tagged for identification, may be used in the work after serving their pur¬ 
pose as samples. Rejected samples of value will be returned to the contractor 
by express at his expense. 

22. Patents. The department will not recognize demands brought on ac¬ 
count of infringement of patents, but will hold the contractor and his bonds¬ 
men strictly responsible for any delay or any cost resulting from his failure to 
protect the Government fully against patent rights. 

23. Permits, etc. —The contractor must obtain all permits, pay all fees and 
charges and municipal inspection fees, and comply with the rules and regula¬ 
tions of the city in regard to excavations, etc., and must complv with all the 
local regulations in regard to street excavations and repairs. 

24. Protection of work and materials. —The contractor must obtain at his 
expense all the necessary policies of insurance on work and material supplied 
by him, as the same will be at his risk until final completion, inspection, and 
acceptance. 

25. Tools, etc. —All tools and appliances required for the proper execution 
of the work must be provided by this contractor, and maintained, stored, re¬ 
paired, and removed at his sole charge and risk. 

26. Excavations. —The contractor to make all necessary excavations for work 
in this contract in an approved manner. All earth, etc., taken out to be re¬ 
moved from the streets and premises, except what is needed for back filling. 

27. Cutting and drilling. —All required cutting and drilling of masonry, steel, 
ironwork, etc., of structures affected by this work must be done by this con¬ 
tractor, and all disturbed construction or finish must be made good, but under 
no conditions must structural work be cut, except upon the approval of the 
chief engineer and superintendent of public buildings, or other authorized 
representative of his office. 

28. Structural difficulties. —Should any structural difficulties prevent the in¬ 
stallation of work, etc., as indicated on the plans, slight deviation therefrom 
may be made upon the written approval of the chief engineer and superintend¬ 
ent of public buildings. Changes of magnitude and all those involving deduc¬ 
tions or extras must have the written approval of the Supervising Architect 
before being made. 

29. Cleaning up. —As the chief engineer and superintendent of public build¬ 
ings may direct, both during the progress of the work and upon completion of 
same under this contract, the contractor will be required to clean up in and 
around the buildings or streets where his work has been performed and remove 
from the premises all rubbish and debris caused by the work under this 
contract. 

30. Protection and damage. —All work contemplated in this specification and 
all work in connection therewith must be properly protected. 

The contractor will be held responsible for and be required to make good 
at his own expense all damage caused by his workmen, during the execution of 
the contract, to work, materials in place or on the premises, or included in this 
contract. 

31. Tests and inspections. —At such times as hereinafter specified the Super¬ 
vising Architect will cause such tests or inspections of the installation or ap¬ 
pliances to be made as may be considered necessary. 

The contractor shall make said tests at his own expense, unless otherwise 
noted, in the presence of the department’s authorized agent, who shall deter¬ 
mine the test conditions; the contractor shall give written notice to the Super¬ 
vising Architect, through the chief engineer and superintendent of public build¬ 


ings, of his readiness for inspection and test. 

Should the inspection or test not be begun, through no fault of the contractor, 
within ten (10) days of receipt of notice by the Supervising Architect, allow¬ 
ance will be made as hereinafter provided. 

Should the inspection or test be delayed upon the arrival of the inspector, or 
require repetition for any reason for which the contractor is responsible, the 
cost of delayed or subsequent inspections and tests, including the salary, travel¬ 
ing and other expenses of the inspector or inspectors, shall be at the expense of 
the contractor and be deducted from any money due him upon the contract. 

In all questions as to the interpretation of the drawings and specifications, 
the satisfactory completion of the work, and the defects necessary to be reme¬ 
died, the decision of the Supervising Architect shall be final and binding upon 

the contractor. ' . _ , ,, , 

In the event the contractor does not within a reasonable time remedy all de¬ 
fects and make all changes demanded by the Supervising Architect to complete 


186 


PNEUMATIC-TUBE SYSTEM. 


the work satisfactorily, the right is reserved to have defects remedied or 
changes made and to charge the cost of same against the account of the con¬ 
tractor. 

32. Payments. —Payments will be made monthly, if desired by the contractor, 
on account of the work satisfactorily in place in the buildings or streets, based 
on the estimated value thereof, as ascertained by the Supervising Architect, less 
25 per cent of such estimate, which will be retained until the final inspection 
and tests of all materials and work embraced in the contract, after which time 
final payment of the balance will be made. 

33. Guarantee. —The bond which will be required in connection with the con¬ 
tract must guarantee each and every part of the work thereunder as well as 
properly safeguard the interests of the city of New York, the United States 
Government, and the interests of all parties affected by this work. The con¬ 
tractor will be required to remedy at his own expense all defects which may 
develop by reason of the use of any inferior or defective materials or work¬ 
manship, and make good all damage done persons or property which may be 
caused by this work. It must also be understood and agreed that the final 
acceptance and payment for the work will not relieve the contractor for having 
installed defective materials and work not apparent at time of final inspection. 

34. Description of work. —This specification contemplates the installation of a 
complete double pneumatic-tube service between the buildings named on route 
shown on drawings, and the work done under this contract will include the 
furnishing and laying of the pipe lines or “ tubes,” furnishing and placing the 
transmitting and receiving apparatus at each station, furnishing and placing 
the air compressors or blowers with their motors, furnishing and placing the 
necessary tanks, piping, etc., in connection with the compressors and tubes, pre¬ 
paring the entrance for the tubes into the buildings, furnishing and erecting the 
necessary electric wiring, etc., all as more fully hereinafter described and 
specified. 

35. Pneumatic tul)es. —The pipe used for the straight runs of the “ tubes ” 
shall be cast-iron hub (or bell-and-spigot) water pipe, of nominal diameter of 
8 inches and nominal lengths of 12 feet, and must weigh approximately 60 
pounds per linear foot before being bored, with an allowable variation of 4 
per cent either way. Any length weighing less than the lower limit will be 
rejected. 

36. Material. —The material used in making the pipes shall be first-class 
quality of gray iron adapted for the purpose, the metal to be without admixture 
of cinder or inferior metal of any sort, and shall be of such character as will 
make sound, strong, tough, even-grained castings capable of being easily 
machined. 

37. Tests of material. —Two specimen bars 30 inches long, 2 inches wide, and 1 
inch thick shall be cast, one near the beginning, the other near the end of each 
heat from the same batch of metal that the pipes are cast from. The specimens 
must be stamped near one end with the initials of the maker’s name, the year 
of casting, and the serial heat number with letters of suitable size. The 
bars shall be tested by being placed flatwise upon supports 24 inches apart 
and loaded at the center until broken. If the two bars representing any one 
heat, being sound and of the area of 2 square inches, shall be broken at this test 
by less than 1,900 pounds, the pipes cast at that heat shall be rejected. Should 
the dimensions of the test bars vary from those given above, a proper allowance 
will be made. 

38. Castings. —The pipes shall be cast in dry-sand molds, in a vertical posi¬ 
tion, with the bell end up. No casting shall be taken from the molds until it is 
thoroughly cold. After the pipes are taken from the mold enough of the plain 
or spigot ends shall be cut off to free the pipes from the effects of the chill. 
The pipes shall be about 12 feet long after cutting, the ends square and true. 
Defective plain ends may be cut off, provided that in no case shall a length 
be shorter than 9 feet, not including the bell end; also that not more than 5 
per cent of the whole number of pipes shall be less than 10 feet long, and not 
more than 10 per cent shall be less than 11 feet 6 inches long, exclusive of the 
bell end. Where the pipes are cut off the end must be left square and true. 

The pipe castings shall be free from cold shuts, sand holes, hard spots, or 
serious defects of any description whatever. No plugging, burning in, or filling 
of any kind is to be done, and no lumps shall be left in the barrel or socket. 

The lengths shall be rejected when inside diameter exceeds 8 inches. All 
bores shall be straight throughout, and eccentricity between the inner and outer 
diameter shall not exceed ^ inch. 


PNEUMATIC-TUBE SYSTEM. 


187 


Each length shall have clearly cast on its outer surface the initials of the 
maker’s name, etc., as specified for the test pieces, all letters on pipes to be not 
less than 2 inches long and 5 inch in relief. 

All lengths shall be thoroughly cleaned and freed from sand, scale, and rust, 
and must be approved in these respects before being dipped. 

39. Coating. —After the pipes have been prepared they shall be coated on the 
outside with a coal-tar-pitch varnish that shall contain sufficient oil to make a 
smooth coating, tough and tenacious when cold, and not brittle or with any 
tendency to scale off. 

Each length shall have a temperature of 300° F. at the time it is dipped. 
The temperature of the varnish shall also be at 300°, and shall be maintained 
at that temperature during the time the casting is immersed. Each casting 
shall remain in the bath at least five minutes. 

40. Hydrostatic test. —When the coating has become hard each length shall 
be subjected to a hydrostatic test of not less than 200 pounds per square inch 
for a period of not less than three minutes, and, if required by the inspector, 
shall be subjected to a hammer test while under pressure. Any length not 
absolutely tight under this test shall be rejected. 

41. Bends. —The bends must- be made of material in all respects similar to 
that of which the straight lengths are cast. They shall be curved to a uni¬ 
form radius of 8 feet to the center of the pipe, and made in short lengths, not 
longer than 22^° (finished length), the ends flanged. The body of the bends 
to be 91 inches diameter outside, cored to bore 8| inches; the flanges cast 13^ 
inches diameter by 1| inches thick. Bends may be made in shorter lengths 
than above designated, but must all be of same radius. 

42. Special fittings. —All special fittings necessary to properly connect the 
tube lines shall be of material as above specified. All bends and specials shall 
be marked and coated as specified for tube lengths, but if cast at different 
foundry or at different heats specimen bars shall be cast, marked, and tested 
as above specified. 

43. Machining. —All straight lengths of bell and spigot pipe shall be bored to 
8J inches internal diameter, with not more than Sz inch ( inch each way) 
variation in parallelism in any length, and the finished bore shall be smooth 
without ridges or roughness of any sort. 

The bell end of each length shall be counterbored, at least ? inch deep, as 
large in diameter as the spigot end of the adjoining length will allow, which 
shall be turned to fit, making the fit slightly taper, and to bottom in the coun¬ 
terbore. All connections and spigots must be made uniform in size. The bores 
of two adjoining lengths must be alike at the joints without any perceptible 
shoulder, the ends being reamed to size for that purpose if necessary before 
being placed in the trench. 

The bends shall be ground to internal diameter of 8§ inches, and unless oth¬ 
erwise needed for special locations the angle of the flange faces shall be ma¬ 
chined to 22^° to each other and the flanges drilled to template for eight f-inch 
bolts and two dowel pins not less than H inch diameter. The holes for the 
dowel pins shall be drilled to template also. 

44. Cones. —Suitable straight connecting pieces called “ cones ” shall be 1 or 
2 feet long, with one end flanged, the other having either a bell or a spigot end, 
as may be needed, must be furnished to make the connection between the bends 
and tangents (straight runs). The cones shall be bored taper from the bore of 
the tube to the bore of the bends, but the flanges must be faced at right angles 
to one side of the bore, and not at right angles to the axis of the bore. This 
is for the purpose of bringing the outer side of the tapered bore tangent to the 
outer curve of the bend. The flanges of the cones and the bell and spigot ends 
to be fitted as heretofore specified. 

45. Wedge jnece or closures. —Furnish suitable flanged castings called 
wedge pieces for insertion in the tube lines to gain access to the interior 
of the pipes, the removable piece being 26 inches long on center line. The 
flanges of the wedge piece shall be inclined 5° to the horizontal axis of pipe, or 
10° to each other. Wedge pieces shall be made for either flanged or hub and 
spigot pipe. In lieu of wedge pieces, cast-iron closures of approved pattern 
may be used. 

46. Defects of pipes, etc. —Sand holes, hard spots, or other defects of the 
Interior surface of pipes or fittings developed during the process of machining, 
of a degree serious enough to interfere with the smoothness of the bore, shall 
be rejected. 

Care shall be taken in handling the pipes, etc., not to injure the coating. 


188 


PNEUMATIC-TUBE SYSTEM. 


47. Tests of tules and fittings—AM pipes, bends, etc., after being machined, 
shall be tested with 50 pounds air pressure. Any pipe or fittings showing 
leaks through body or flanges shall be rejected; but if leaks occur near spigot 
end of any pipe, such leaky portion may be cut off, provided that the remaining 
sound portion is not less than 5 feet long. 

48. Inspection and testing.— Upon receipt by the Supervising Architect of 
advice from the contractor at what foundry the pipes and fittings will be cast 
or at what shop they will be machined and tested and when they will be ready, 
an inspector will be detailed to make the specified inspection and tests. 

The right is reserved to omit the supervision by the department’s inspector of 
the transverse test of the specimen bars and the hydrostatic and pneumatic 
tests hereinbefore prescribed, provided the contractor shall furnish a sworn 
statement that the conditions have been complied with and that the castings 
delivered are in accordance with the specified requirements. 

In the event the Supervising Architect elects to have made the shop inspec¬ 
tions hereinbefore noted, all pipe and fittings for the tube lines passed by the 
inspector shall be marked by him with a specinl mark provided for that pur¬ 
pose in such a place that the mark shall be visible when the tubes are laid in 
the trench. The weight of each length shall b6 conspicuously painted on out¬ 
side. 

49. Interior coating. —All machined pipe and fittings after having passed the 
specified inspection and tests must have the interior coated with approved rust¬ 
preventing coating of a lubricating nature, and before shipment the ends of the 
pipes and fittings must be capped, plugged, or otherwise prepared to prevent 
grit or dirt from getting into the bore while tubes are in transit. 

50. Wire conduit. —The contractor shall also furnish the material for a "wire 
conduit between the two buildings, to be laid in the same trench with the 
pneumatic tubes, which conduit shall be made of 4-inch cast iron, hub and 
spigot water pipe, in 12-feet lengths, 4 inch thick, weighing approximately 22 
pounds per foot. The bore of the pipe shall be free from lumps, fins, or rough¬ 
ness of any sort, and, to be acceptable, a mandrel 12 inches long and of diameter 

3 inch less than nominal diameter of the pipe shall pass freely through each 
length and section of bend. 

The castings for the horizontal bends must be curved to a radius of 8 feet 
to center of pipe, but all other bends may be of lesser radius, but not less than 

4 feet. The bends may be made in as many pieces or sections as desired, and 
both pipes and bends must bear the mark of the manufacturer. 

The several lengths of pipes and bends for this work shall have the ends 
fitted, male and female, as specified for the joints of the 8-inch tubes. 

The ends must be reamed or otherwise fitted so that there will be no shoulder 
or offset at the joints. 

These pipes and bends must be coated on outside, as specified for the S-inch 
pipes, but the inside shall be finished with a hard enamel finish similar to that 
used for coating the steel conduit used for the protection of electric wiring 
hereinafter specified. 

Before the coating is applied the pipes and fittings must be subjected to a 
hydrostatic test of 200 pounds per square inch, and, to be acceptable, must be 
thoroughly tight. An affidavit of contractor that these pipes have successfully 
withstood the above test must be furnished the Supervising Architect. 

51. Alternate conduit. —Each bidder will name in his proposal the sum to be 
added to or deducted from the lump sum of his bid for the use of fiber conduit 
in lieu of the cast-iron pipe above specified. 

The conduit shall be of 4 inches internal diameter, 4 inch thick; the bore to 
vary not more than £ inch from the true circle. The material shall be wood 
pulp or fiber, wrapped in thin films, upon a forming mandrel under pressure, 
thoroughly dried and saturated with preservative compound. 

The sections shall be 5 feet in length with ends squared and threaded for 
couplings, the threads to be of the United States standard or half V type, four 
to the inch, cut far enough back, so that when the couplings are screwed up 
the ends of adjoining lengths shall butt. The couplings shall be not less than 
4 inches long, £ inch thick, and threaded to fit the ends of the pipe snugly. 

The interior of the pipe shall be free from obstructions, and the ends shall 
be reamed so there can be no offsets at the joints when put together. 

Bends to be of radius as specified for cast-iron pipe, and parallelism, etc., 
shall be determined as specified for the iron pipe. 


PNEUMATIC-TUBE SYSTEM. 


189 


52. Trenching .—The office drawings show approximately a typical location 
of pipes and conduits in the streets and the proposed location of the tubes, 
but, in order to determine the exact location of the trench, the contractor shall 
dig test holes ahead of the trench enough in advance of the actual trenching 
as not to cause delay by reason of changes in line made necessary by the pre¬ 
cise condition discovered by the test holes. 

Earth and other matter removed shall he neatly heaped, so as to afford the 
least possible obstruction to traffic. All paving shall be carefully preserved 
and piled neatly along the side of the trench as required by New York City 
regulations. 

Should it be required by the municipal authorities, the contractor shall cart 
off all dirt, leaving the street clear, returning the same for backfilling after 
the tubes are laid. 

Care must be taken not to cover hydrants or gates belonging to other com¬ 
panies or city departments. 

The contractor must supply all apparatus, labor, etc., required to keep trenches 
free from water, and must dispose of all pumpage as required by city authorities. 
Contractor must provide all apparatus for pumpage and pay all costs in con¬ 
nection therewith. 

The contractor shall provide all necessary timbering, sheet piling, bracing, 
temporary covering, bridging, etc., for protecting the trenches and providing 
for the passage of the street traffic while the trenches are open. 

In locating the line of trench across Battery Park from Battery Place to the 
customhouse, care must be taken to avoid the trees, if possible; but if any 
trees have to be removed, the work must be done under the direction of the 
proper city authorities and at the contractor’s expense. 

The contractor shall keep the street surface over and along the trench in a 
safe and satisfactory condition for a period conforming to the time required by 
the municipal authorities. If wdthin this time he be notified that the paving 
or street surfaces over and along said trench needs repairing and he fails to 
make the required repairs within one week from receiving notice, the Govern¬ 
ment shall have the right to have such repairs made and to deduct the cost of 
same from money due the contractor. 

The contractor shall also be responsible for any accident to persons or prop¬ 
erty that may happen during the said period on account of the defective 
condition of such surface. , 

All pipes found in the trench shall be properly supported by blocking or 
chaining to the satisfaction of the chief engineer and superintendent of public 
buildings, but this in no way releases the contractor from any obligation in case 
of accident. 

53. Pipe laying .—All dirt must be removed from the interior of the tubes and 
the bores cleaned to the satisfaction of the chief engineer and superintendent 
of public buildings before they are placed in the trench. The bell ends of the 
tubes must also be thoroughly cleaned before the joints are made. 

The tubes shall he laid with the bell ends of one line facing in the direction 
indicated by the chief engineer and superintendent of public buildings, and the 
bell ends of the other line in the opposite direction. 

The tubes shall be so placed that the line be kept straight except where the 
course requires bends. 

The nominal grade of the tubes shall be 4 feet from the street surface to the 
center of the tubes, but where objections occur at this level the grade of the 
tubes must be elevated or depressed, as the case may be, to clear the obstruction. 

Wherever such elevation or depression occurs, the flanged wedge pieces here¬ 
tofore specified shall be inserted in each pneumatic tube at the highest level, 
and unless the tube is below water level wedge pieces shall also be placed at 
the lowest points of the grade, or by a deflection in the tube joints not exceeding 
2 inches in 12 feet. 

The 4-inch wiring conduit shall follow the same profile as that required for 
the pneumatic tubes. 

When laying the pneumatic tubes in the trench they shall have a positive 
bearing on'wooden blocks, viz: The successive lengths shall be put in position 
with one end supported by the end of the tube last laid, the other end to rest 
on wooden blocking not less than 2S inches long and of sufficient height to raise 
the tube to the required grade; said blocking to be not less than 6 inches wide, 
and placed as close to the end of the tube as may be, without interfering with 
the calking of the joints. Wedges 6 inches long, made of 2 by 2 inch spruce, 
shall be placed on the blocking to hold the length of tube in position. Each 


190 


PNEUMATIC-TUBE SYSTEM. 


male end shall be set into the counterbore at the bottom of the bell which it 
joints, so that the male end shall bottom in the counterbore, except where the 
chief engineer and superintendent of public buildings directs that clearance be 
left. Careful measurements of each length of tube shall be made, and proper 
marks made thereon, so that when the tubes are placed in position the exact 
clearance in the counterbore, if any, may be determined. 

After a length of tube is placed in position in the trench an iron mandrel 
attached to a 15-foot rod shall be passed through the tube and joint. If the 
mandrel meets with an obstruction and can not be moved freely by hand 
through the tube and joint, the length must be so adjusted that the mandrel 
will pass, or if the free passage of the mandrel is hindered by dirt or packing 
the same must be removed. When it is necessary to change the direction of 
the line of the tubes this may be done by making a slight angle in the line at 
each joint, provided, however, the mandrel may be moved freely past said 
joints; but where the change in direction is abrupt, so that the mandrel will 
not pass freely, then the cast-iron bends, regular or special, heretofore specified, 
shall be used. 

After each joint is made, the iron mandrel must again be passed through it, 
and if the mandrel wedges or does not move freely, the joint must be corrected 
to the satisfaction of the chief engineer and superintendent of public buildings 
before any more lengths are laid. 

The bell and spigot joints will be calked with lead and oakum, the flange- 
joints with sheet lead not less than 52 inch nor more than inch thick. 
Gaskets shall be full size of flanges, but must be cut so that they will not 
protrude into the bore when the joints are made up. 

The calked joints shall be made with picked oakum and best pig lead. 
Strands of clean yarn shall be carefully rammed into the bell, sufficiently firm 
to cause the yarning tool to spring back when impinged against it. The space 
left for lead in each joint must not be less than 2 inches. 

A fresh ladle of hot lead must be used to make each joint. No two joints 
may be poured with lead taken from the pot at one time. If in special cases 
the chief engineer and superintendent of public buildings orders a greater lead 
depth to be given, it shall be done without extra charge. 

The “ snake ” or “ clip ” for holding the lead shall be so set that after the 
joint is poured and clip removed, the lead on its outer circumference shall be 
flush with the face of the bell, and on its inner circumference shall extend not 
less than y 8 inch. This extension shall be carefuly driven back into the bell 
until the calking brings the lead flush with the face of the bell at every joint. 

Necessary lead for joints must in every case be supplied in one continuous 
pouring. 

The joints in the 4-inch cast-iron wire conduit shall be made in accordance 
with specification for the 8-inch tubes, except that the lead depth shall suit 
the size of the pipe. 

54. Testing .—The pneumatic tubes shall be tested, and carefully examined 
for leakage while under air pressure of 25 pounds per square inch before 
filling the trench. Such tests shall be made from manhole to manhole. The 
pressure shall be maintained long enough for a careful examination of the pipe 
and joints. To detect leaks that are not otherwise apparent, soapy water 
shall be applied to all joints or other suspected places, and where leaks occur 
they must be stopped in a manner approved by the chief engineer and superin¬ 
tendent of public buildings. Defective sections or fitting must be removed, 
and perfect ones substituted. After the visible leaks are stopped the air 
must be cut off from the compressor, and to be satisfactory the pressure must 
remain on the tubes and shall show no appreciable drop in five minutes after 
the air within the tube has reached a stable temperature. 

After the tube lines are completed and closed, an air pressure of 25 pounds 
per square inch shall be again applied, but this time to the whole line, and 
maintained long enough for examination and test of all joints in the manholes 
with soapy water. All leaks must be stopped. 

The above specified tests shall be made in the presence of the chief engineer 
and superintendent of public buildings, or his authorized representative, and 
the results of such tests shall be entirely satisfactory to him. 

The contractor must provide a suitable air compressor and motor for this 
work, which shall be operated at his expense. He shall also furnish all fit¬ 
tings, piping, hose, valves, instruments, etc., necessary for the specified tests and 
pay for all power and labor. 

No tests are required for the 4-inch wiring conduit. 


PNEUMATIC-TUBE SYSTEM. 


191 


After the tests and before back tilling the trench all joints in all lines shall 
V e . SWil t>bed with two coats of hot asphaltum. If fiber conduit is accepted, the 
joints shall be waterproofed in accordance with the best practice in vogue for 
that material. 

55. Manhole. —Wherever there are wedge fittings inserted in the tube lines 
a manhole marked “A” (see drawing) shall be located for access to same. 
Manholes A, with wedge fitting, shah be placed in the line at other points 
than at the high and low grades for access to tubes—i. e., when the horizontal 
runs of tube exceeds 600 feet, and the distance between such manholes shall 
not exceed GOO feet. Where the lines change grade when crossing underground 
trolley conduits, or subway tunnels, there shall be a manhole A on each side 
of such conduit or tunnel. 

There shall be at least one manhole B in each block for access to the wiring 
conduit, but when the blocks are longer than 300 feet there shall be two such 
manholes in the block for access to the conduit, except that if there is a man¬ 
hole A in any block it may be taken in lieu of B, but any manhole, whether 
A or B, that may be needed to furnish access to wiring conduit, shall not be 
more than 300 feet apart. 

The manholes shall be constructed of hard-burned red brick, laid in Portland- 
cement mortar on 9-inch concrete bed. 

The manhole covers and frames shall be of cast iron, of weight, design, etc., 
to comply with city regulations, the frames resting on cast-iron tee bars or 
cast-iron leveling strips. 

There shall be two covers for each manhole, the outer one loose, the inner 
one to make water-tight joint on inner projecting flange of frame. 

The joint shall be made with a gasket of 1-inch diameter rubber tube 
fastened down with suitable set screws and cast-steel yoke, the yoke to be fitted 
with a brass nut. 

Plaster the outside of brickwork of manholes with 1 inch of cement mortar, 
and coat the interior of manhole with two coats of hot asphalt. 

56. Mortar. —The mortar used in this work shall be composed of 1 volume 
of Portland cement and 3 of sand. 

57. Concrete. —The concrete shall be composed of 1 volume of Portland 
cement, 2 of sand, and 4 of broken stone, thoroughly mixed and placed in 
excavation very wet. 

58. Bach filling. —All the material taken from the trench shall as far as pos¬ 
sible be returned upon back filling. Any residue shall be removed by the con¬ 
tractor immediately upon the completion of back filling. In back filling earth 
only may be used for a space of not less than 6 inches around the tubes and 
castings. The best of the excavated material shall be deposited in layers not 
more than 6 inches in depth, each layer to be thoroughly rammed, to the 
satisfaction of the superintendent or his representative before the next layer 
is deposited in the trench. 

When the trench is in rock excavation the refilling shall be done with earth. 

The contractor shall provide the necessary flat tamping irons to be used in 
tamping the earth under the tubes. 

The street surface shall be finished in accordance with the requirements of 
the municipal authorities. 

59. Fish wires. —This contractor shall pull a No. 10 galvanized steel fish wire 
through the wiring conduit, and secure same in manholes “A,” out of the way 
of access to the pneumatic tube wedge fittings in such manholes. 

60. Entrance to buildings. —This contractor shall bring the tubes and wire 
conduit into both buildings where shown or directed, and shall thoroughly close 
the openings around the pipes and repair the waterproofing to the satisfaction 
of the chief engineer and superintendent of public buildings. 

61. Terminals, —This contractor shall furnish and place all of the requisite 
terminal apparatus, motors, steam or electric air compressors, piping, tanks, 
sending and receiving devices, and all other appliances that may be needed for 
the satisfactory operation of the tubes. 

The sending and receiving apparatus at each terminal shall be of the latest 
approved design of transmitting and receiving machinery, fitted with all de¬ 
vices belonging thereto, and all suitably mounted and placed in each building 
where shown or directed. 

After the award of the contract the successful bidder shall submit drawings 
in triplicate of the transmitters, receivers, etc., that he proposes to furnish. 
Successful bidder must also furnish other drawings as may be called for. No 
drawings are to accompany the proposal. 


192 


PNEUMATIC-TUBE SYSTEM. 


Furnish for each terminal one pressure tank 4 feet diameter by 8 feet high, 
the shells of which shall be made of i-inch tank steel and heads of §-inch 
flange steel. The heads shall be bumped or pressed to a radius of not more 
than 4 feet and placed in tank with one flange turned in, the other flange turned! 
out. The joints shall be single-riveted lap joints, made with f-inch diameter 
steel rivets spaced not more than 2 inches center to center. 

The tanks shall be mounted at such height and in such location as shall best 
suit the connections to other apparatus. 

Furnish for each tank the following attachments: 

One 11 by 15 inch manhole, with pressed steel frame, cover, dogs, pack¬ 
ing, and suitable bolts. 

Two cast-steel 8-inch threaded flanges, or two cast-steel 8-inch flanged 
nozzles. 

One 4-inch pop safety valve. 

One pressure gauge having noncorrosive movement with G-inch dial, grad¬ 
uated to 30 pounds pressure, set in polished brass case. 

The pinion, pinion staff, sector staff, and the hair spring of the gauge must 
be constructed of either nickel, phosphor bronze, Tobin bronze, or German 
silver, solid, not plated. The top and bottom plates must be made of one of the 
above metals, solid, or of brass or steam metal, with substantial bushings of 
one of the above metals, as specified for the pinion and sector staffs. Levers, 
slides, and their adjusting or pivot screws may be made of brass or steam metal. 

The tanks shall be placed where shown or directed, and the pipe connections 
from the compressors and tubes made thereto. 

Make cross connection, properly valved, between the two tubes at each end 
that will enable the tubes to be thrown in series at either terminal, so that 
they may be served by either compressor and motor should the other be dis¬ 
abled. 

62. Piping .—The piping in the buildings embraced in this contract (except 
otherwise specified or noted) must be of the best quality, full weight, wrought- 
iron or mild-steel pipe, of sizes noted or specified, true, round, and with full-cut 
threads. The sizes given are the nominal internal diameter in all cases. 

Fittings, unless otherwise specified or noted, must be of best quality cast 
iron, free from all defects and of standard weight pattern. Elbows and tees 
must be of the long radius or sweep pattern where structural conditions permit. 

Pipes 21 inches diameter and larger shall have flange union connections at 
machinery or where special conditions shall require same. Where unions are 
needed on pipes 2 inches diameter or smaller, all-brass, heavy pattern, ground- 
joint unions are to be used, for the use of malleable-iron unions or long screws 
will not be permitted. 

All screw joints shall be made up tight without calking the threads. Lubri¬ 
cating material used with screwed joints may be red lead and linseed oil or any 
other approved compound. 

All flanges used in this work must be of standard weight, and whether on 
pipes, fittings, or valves must be faced true. 

All fixtures, etc., calling for flanged connections must be fitted with compan¬ 
ion flanges, and the flanges at each joint must match. 

The gaskets must be full gaskets—that is, they must be of the full diameter 
of flanges between which they are placed. 

63. Pipe supports .—All overhead pipes shall be supported by heavy adjust¬ 
able wrought-iron expansion hangers, spaced not more than 10 feet apart. 
Where space will permit, hangers must be designed with a right and left 
coupling or turnbuckle or other approved means for making vertical adjust¬ 
ment of hanger without blocking up pipe or removing the supporting ring. 

Where there are valves or other heavy fittings, additional hangers shall be 
provided if so directed by chief engineer and superintendent of public buildings. 

64. Valves .—Valves 2 inches diameter or smaller shall be made of best grade 
of steam metal; valves 21 inches diameter and larger shall have iron bodies 
with brass trimmings; valves 4 inches diameter and larger shall be flanged; 
those 31 inches diameter or smaller may be either flanged or screwed, as de¬ 
sired. Stop valves, unless otherwise specified or noted, shall be standard 
weight gate valves with solid wedge noncorrosive seats. 

65. Compressors .—This contractor shall furnish and erect at each terminal 
a compressor or blower having a capacity to furnish enough air at the pressure 
required to operate one S-inch tube between the two buildings, a distance of 
approximately 10,500 feet, at an average speed of 30 miles per hour when send¬ 
ing at fifteen-second intervals. 


PNEUMATIC-TUBE SYSTEM. 


193 


Consideration will be given to proposals naming either the piston or rotary 
blower type, and each bidder shall name in his proposal at least one make of 
each type of snch compressor or blower and the lump sum for which he will 
furnish either type. 

Each bidder shall also state in his proposal the power absorbed at the com¬ 
pressor shaft, including the slip, heating, mechanical losses, etc. (but excluding 
the motor losses), for each type, to compress 1,000 cubic feet of free air per 
minute to the pressure per square inch named in the proposal as the pressure 
required to operate the tube under the specified conditions. 

Bidders will also state the displacement of compressor in cubic feet of free 
air per minute, exclusive of slip or clearance, and the speed of compressor in 
revolutions per minute when the tube shall be working at an average rate of 
30 miles per hour. 

66. Rotary blowers .—Rotary blowers shall be of the two-impeller type, with 
all parts rigid enough to retain their shape when working under the maximum 
pressure, which may at times be 50 per cent higher than the working pressure 
at 30-mile rate. 

The impellers must be machined all over, and must be of such shape and size 
that they will revolve freely, and neither touch each other nor the casing (or 
cylinder) in which they are placed. The clearance between the impellers 
themselves, the impellers, and the cylinders or heads must not exceed inch. 

The shafts must be of steel best adapted for the purpose, and have the jour¬ 
nals ground to size; the journal boxes must be long and rigidly supported by 
the cylinder heads, and placed far enough from the cylinder heads to allow 
placing a proper stuffing box for the shafts. 

The journal-bearing boxes shall be of the ring-oiling type, provided with 
the necessary oil reservoirs, grooves, channels, rings, etc., for the thorough 
distribution of oil to the journals, and be fitted with the usual gauge glasses, 
drain cocks, etc. 

The boxes shall be lined with the best grade antifriction metal, hammered 
in place and bored to fit the shaft. 

The shafts must be connected by two pairs of wide-faced steel gears, cut 
from the solid, keyed and clamped to the shafts, and designed for the maxi¬ 
mum work of the compressor. 

The gears shall run in suitable oil-tight gear boxes that shall be fitted with 
adequate means for lubrication. 

The blower will be driven by one of its two shafts, direct connected, prop¬ 
erly coupled to the engine or motor driving same. 

67. Piston compressors .—Piston compressors shall be of the horizontal, 
double-acting duplex (or twin) type, with the cranks set at right angles. 

The compresor shaft shall be provided with a fly wheel heavy enough to take 
up the inequalities of turning effect on the crank shaft due to variations of 
the load during each compressor stroke. 

The running gear, framing, shafts, etc., must be proportioned for maximum 
load, and must operate without deflection or distortion under all stresses of 


The main journal boxes, connecting-rod boxes, etc., shall be lined with the 
best grade of antifriction metal, and the crossbead wearing faces shall be 

faced or spotted with same. . . 1 . 

Continuous or sight-feed lubrication shall be provided for all principal jour¬ 


nals or rubbing surfaces. „ . „ . . , 

Suitable means of adjustment for wear must be provided for all journals and 

rubbing surface. , . . , , 

The cylinder may be fitted with either poppet valves, mechanically operated 

valves, or a combination of both, but must be designed with minimum amount 


of clearance. . ■ .. , . „ 

The pistons shall be wide (thick), in one piece, cast hollow, as light as pos¬ 
sible consistent with strength, and the castings must be sound, and all open¬ 
ings into the interior must be plugged absolutely tight, for air must be kept 
from the inside of the piston. 

The piston packing shall be metallic packing of the most approved type for 


(he work. . 1 

Provide suitable means for lubrication of cylinder and valves. 

The successful bidder after award of contract shall submit detail drawings 

of the compressor selected. 


78419—13-13 


194 


PNEUMATIC-TUBE SYSTEM. 


68. Motive power .—The compressor at the customhouse shall be electric 
driven, while that at the appraiser’s warehouse may be either electric or steam 
driven. 

69. Steam engine. —If steam power is adopted the engine shall be a single 
cylinder engine, direct connected to the compressor shaft, made tandem to either 
compressor; twin piston compressors to be furnished in this case. 

The engines shall be fitted with single eccentric, four-valve gear, with 
cylinder so proportioned that when the tube is being worked at the 30 miles 
per hour rate, the cut-off shall not be later than one-third nor earlier than 
one-fifth of the stroke. 

The specification for bed plate, framing, running gear, bearings, oiling devices, 
piston packing, etc., for the piston compressors shall also cover similar parts of 
engine construction. 

The governor shall be of the belt-driven, fly-ball type, fitted with the usual 
dashpot, safety stop, and suitable speed-regulation device by which the speed 
of the engine may be controlled from 40 per cent below to 15 per cent above 
normal while engine is running. 

70. Piping .—This contractor shall furnish and place all the steam, exhaust, 
and drip piping to properly connect the engine to the existing pipe systems in 
place. All this work to be installed as directed by the chief engineer and super¬ 
intendent of public buildings. 

71. Nonconducting covering. —After the piping has been tested and proven 
tight, the nonconducting coverings shall be applied. All of the exposed steam 
and exhaust pipe placed under this contract must be covered with nonconduct¬ 
ing, fireproof, sectional, removable pipe covering, not less than A-inch think, 
with S-ounce canvas jacket, put on in a first-class manner, using solid brass 
bands at the joints not less han No. 30 B. & S. sheet-metal gauge in thickness 
and of widths in harmony with the diameter of the pipe. 

Fittings and valves may be covered with either sectional or plastic covering, 
as desired, finished with 8-ounce canvas and brass bands. 

Covering acceptable under this specification must have as a basis either pure 
carbonate of magnesia (MgC0 3 ) or pure long-fibered asbestos, or a combina¬ 
tion of the two materials, and for high-pressure piping must contain not less 
than 85 per cent and for low-pressure piping 35 per cent of the basis. The re¬ 
mainder may be made up of pure commercial carbonate or sulphate of lime. 
If the coverings contain other ingredients not before mentioned, they will be 
considered as impurities, and must not exceed more than 10 per cent of the 
total compound. 

After being placed the covering shall be given two coats of asbestos fireproof 
paint, the second coat to be of color selected. Remove the bands while paint¬ 
ing the covering and replace same after paint is dry. 

The successful bidder shall submit to the Supervising Architect, express 
prepaid, samples of the covering, both sectional and plastic, shortly after the 
award of the contract, and the right is reserved to require the contractor to 
submit other samples, if the first submitted upon analysis fail to meet the 
specification requirements. 

The samples submitted, and every section, bag, or box of covering delivered 
at the building shall have the manufacturer’s stamp or label attached, giving 
name of manufacturer, and brand and quality of material, and samples shall 
also have name of bidder, and building for which it is intended, marked 
thereon. 

72. Alternate. —Each bidder will state in the proposal sheet the lump sum 
for which he will install the pneumatic-tube service called for, but with the 
compressors electric driven at both terminals. 

73. Electric motors.— The electric motors shall be of sufficient capacity to op¬ 
erate each tube under the specified conditions, and must be capable of running 
at 25 per cent overload for at least one hour without undue heating. 

Each bidder must state on proposal sheet the guaranteed efficiencies at one- 
half and full load of the motors he proposes to use. 

Each motor shall be direct connected to the driving shaft of its respective ro¬ 
tary compressor and either direct connected or gear connected to its respective 
piston compressor, and shall be wound for direct current, 240 volts at the cus¬ 
tomhouse and 115 volts at the appraisers’ warehouse. 

Armature shall be of toothed core construction, with windings thoroughly 
insulated and securely fastened in place, and balanced both mechanically and 
electrically. 


PNEUMATIC-TUBE SYSTEM. 


195 


Commutators shall be of drop-forged copper of highest conductivity, well 
insulated with mica of even thickness; and they shall run free from sparking 
or flashing at the brushes under all conditions of speed or load. They must 
be free from all defects and have ample bearing surface and radial depth as 
provision for wear. 

Brushes shall be of carbon, having cross-sectional area of not less than 1 
square inch for each 45 amperes of current, and for each motor, mounted on a 
common rocker arm. 

Brush holders shall be of a design to prevent chattering, with individual 
adjustment in tension for each brush. 

Bearings shall be fitted with approved continuous self-oiling devices. 

There shall be an insulation resistance between the motor frame and field 
coils, armature windings, and brush holders of not less than 1 megohm. 

The motors must be capable of standing a breakdown test of 1,500 volts 
alternating current. 

Either or both of the foregoing tests may be applied at the discretion of the 
department’s agent at the time of the shop tests. 

The efficiency, heating, and insulation of motors shall be determined by actual 
test at the shops where motors are constructed in the presence of the depart¬ 
ment's authorized agents, who shall determine test conditions. The tests to 
begin within ten days after receipt of notice from contractors of their readiness 
to commence test; and to be at expense of contractor, except traveling and 
other necessary expenses of department’s agent. 

The maximum rise in temperature of the motors at a continuous run at 
shop at normal speed and full load for a period of eight hours must not exceed 
85° F. above the surrounding atmosphere. 

The motors and compressors are to be finished in a first-class manner, and 
where not polished must be filled and rubbed down, painted two coats at the 
shop, and after installation have two more coats, the finishing tints to be as 
directed by the superintendent. 

74. Foundation .—The foundation for the compressors and motors shall be 
high enough to bring the working parts thereof within easy reach, and shall 
consist of hard-burned red brick laid in cement mortar. Any parts of the sides 
of such foundations that may. be exposed above the basement floor shall be 
faced with white emuneled brick. 

The foundations shall either be entirely covered with the bedplates of the 
machines, or if not so covered any portion of the top of the foundation exposed 
shall be finished with stone (granite) coping. 

Provision must be made in the frame or bedplate of the machine to catch 
all oil drip, and keep same from escaping to the foundation or floor. 

When preparing the basement floors for the foundations the waterproofing 
beneath same must not be disturbed. 

75. Tablets .—Furnish a tablet for each motor to be not less than li inches 
thick, properly secured in place near its motor, located so that access may be 
had to all parts of same without moving it. The rheostat, wiring, etc., shall 
be mounted on the back of tablet, and the space behind such tablet shall be 
protected or inclosed with wire mesh grille so mounted that if necessary access 
may be had to the back of tablet. 

Furnish and mount on each tablet speed-controlling rheostats of such char¬ 
acter that the speed of the motor may be controlled by resistance in the field 
circuit to 15 per cent above normal speed, and by resistance in armature circuit 
to 50 per cent below normal speed at full load. 

The rheostats shall be fitted with no-voltage release devices and shall be of 
approved make and construction, of noncombustible material, and well venti¬ 
lated. 

Furnish and mount on the tablet, in addition to the rheostats, one approved 
ammeter; one d. P. d. arm independent operation overload circuit breaker. 

76. Wiring .—This contractor shall run all the wiring for the connection of 
motors and tablets, tablets and switchboard, making the connection to the 
switchboard in each building where directed and to the satisfaction of the 
chief engineer and superintendent of public buildings. 

Conductors No. 8 and larger shall be stranded, rubber-covered, well-tinned, 
soft-drawn copper of highest conductivity, and must have a distinctive marking 
of the maker. 

No splices or joints will be permitted in the feeders except at outlets, and 
there they must first be made mechanically and electrically secure, then sol- 


196 


PNEUMATIC-TUBE SYSTEM. 


dered and taped with three layers of rubber and two of friction tape. All 
connections No. S and larger must be made by soldering wires in cup lugs. 

All conductors shall be run in conduits, which shall be of best quality steel 
tubing, of standard-pipe dimensions, smooth inside and out, electro galvanized, 
or enameled with a compound which will prevent oxidation and which will not 
soften or become sticky. Each length of conduit must have the maker’s name, 
initials, or trade-mark permanently stamped thereon. Conduits must be of 
such size as to permit the ready insertion and withdrawal of the conductors 
without -abrasion. 

Conduits must be run with long bends, and not more than four quarter bends 
shall be used in any run. All bends must be free from dents and bruises, and 
the radius of the inner curve must not be less than 4 inches. Ends of conduit 
at each joint shall be cut square and reamed smooth. Conduits shall be con¬ 
tinuous from outlet to outlet. Conduits which are run exposed must be run 
straight, parallel, or at right angles to wall or beam lines. 

All material and workmanship shall be strictly first class, and the entire 
wiring system must be free from short circuits and from grounds, and have 
an insulation resistance between conductors and between conductors and 
ground, based on maximum load, not less than the requirments of the latest 
edition of the National Electrical Code. 

77. Carriers .—Furnish 50 carriers of the latest approved design for S-inch 
tubes, the carriers to be 24 inches long and 7 inches external diameter, con¬ 
structed of galvanized sheet steel. 

The longitudinal joint shall be a soldered single-lock seam, or riveted or 
soldered, as may be required by the chief engineer and superintendent of public 
buildings; one head of the carrier (bottom) shall be cupped, riveted, and 
soldered to shell, and fitted on outside with an elastic buffer. 

The other head (top) of the carrier shall be a hinged cover, fitted with strong 
hinges, in such a way that when closed the cover shall set in from the end of 
the carrier, forming a recess for the locking device. 

The locking device must be easily manipulated, and of such character that 
when the carrier is in the tube the lock can not become undone while it is in 
transit. 

Each carrier shall also be provided with two packing bands, approximately 
2 inches wide, fitted with approved elastic packing, turned to ^2 inch less 
than the bore of the tubes. The packing bonds shall be placed on the carrier 
shell so that the overhanging ends or middle of body of shell shall not touch 
the interior of the tube when carrier is rounding the shortest radius bends in 
the line. 

The contractor shall furnish for approval one sample carrier, complete, that 
he proposes to furnish. 

78. Tool cabinets .—This contractor shall furnish a properly constructed tool 
cabinet of quartered oak and approved dimensions and designs, with door, 
hinges, lock, and keys, for each building, to be placed where directed, each 
cabinet to contain a full set of wrenches and special tools needed for the 
operation and maintenance of the apparatus. 

79. Painting .—All exposed new work or existing painted work disturbed by 
this contractor in both buildings, not elsewhere specified to be painted, shall 
be given one printed coat, finished with two coats, tints to be approved by the 
superintendent. 

80. Tests of apparatus .—After the completion of the installation of the 
pneumatic-tube system, as specified, this contractor shall make a twelve 
working-days’ run of the same, to test the efficiency and capacity of the appa¬ 
ratus, and for the instruction of the employees of the Government who shall 
afterwards operate the same. 

Preliminary runs shall have been made by contractor to perfect the adjust¬ 
ment of the apparatus, etc., previous to the beginning of the official test, so 
that there may be an uninterrupted service of the tubes during the official runs, 
and during the preliminary runs the contractor shall pay for all current 
and furnish the fuel if steam-driven apparatus is installed. 

The official tests shall be made under conditions named under “ Tests and 
inspections,” except that during such test the power will be furnished by the 
Government, for any mail or other matter offered for transmittal by tube which 
shall be sent, but the contractor shall furnish expert operators enough at both 
buildings to demonstrate all points in connection with the successful operation 
of the apparatus, and to give whatever instruction may be necessary to the 
Government employees. 


PNEUMATIC-TUBE SYSTEM. 


197 


The test shall be made for six days at each building, and to be acceptable the 
tubes shall be uninterruptedly operated for seven hours per day, except for 
such time as may be needed to make the changes for the different tests here¬ 
after specified. If during any day’s run the tests have to be discontinued on 
account of stoppage of machinery or tubes for which the contractor is re¬ 
sponsible, the test specified for that day shall be repeated. 

The apparatus shall be run for three days at each building under full load 
condition (30 miles per hour rate), with carriers at 15 seconds interval; one 
day at each building, at same speed, with carriers at thirty seconds interval; 
one day at each building, full speed, with carriers at one minute interval; one- 
half day at each building at 20 miles per hour rate, with carriers at thirty 
seconds interval. 

Readings shall be taken for power consumption every fifteen minutes during 
the test runs at each building by a representative of the department, and if 
steam power is installed at the appraiser’s warehouse indicator diagrams 
shall be taken from both ends of the steam cylinder every fiften minutes, and 
if duplex piston compressors are installed from both ends of the air cylinders 
at same interval. 

Fifteen-minute readings shall also be taken of the air pressure. 

The reading shall be taken at but one building at a time, but the machinery 
shall be operated and tubes served at same rate simultaneously at both build¬ 
ings. 

Readings shall be taken in such a way as will show the variation in power 
and pressures for the operations of the tubes at the different speeds with tubes 
open, and with carriers at wider and closer intervals with weight of carriers 
noted, both full and empty. 

The instruments used during these tests shall be furnished by the Govern¬ 
ment, but the contractor shall make provision for connecting the same. 

If the electric motors are found to heat above the limit specified during the 
full-load tests, they shall be rejected, and this contractor shall replace same 
with motors that will meet the specified requirements, and the full load tests 
be repeated. 

Upon the satisfactory completion of the operating tests of the apparatus 
and its acceptance by the Supervising Architect, the balance due upon the con¬ 
tract shall be paid. 

James Knox Taylor, 
Supervising Architect. 

[Double pneumatic-tube service. New York, N. Y.] 

PROPOSAL FOR THE INSTALLATION OF A DOUBLE PNEUMATIC-TUBE SERVICE BETWEEN 

THE UNITED STATES CUSTOMHOUSE AND THE UNITED STATES APPRAISERS’ WARE¬ 
HOUSE, NEW YORK, N. Y. 

N. B.—After this proposal sheet is filled out it must not be forwarded under 
frank, but must be detached and forwarded under separate cover with postage 
prepaid by the bidder. 

Bidders are expressly notified that the checks of the two lowest bidders will 
be held uncollected and at their risk until the bond required shall have been 
approved by the Secretary of the Treasury. 

_, 1910. 

To the Suprvising Architect, 

Treasury Department, Washington, D. C. 

Sir :_hereby propose to furnish all the labor and material required for 

the installation of a" double pneumatic-tube service between the United States 
customhouse and the United States appraisers’ warehouse, New York City, 
N. Y., in strict accordance with drawings Nos. P. T. 1 and P. T. 2 and this 
specification. 

For rotary blower installation in both buildings, one electric in customhouse 
and one steam driven in appraisers’ warehouse. 
_ ($-) 

For piston compressor installation in both buildings, one electric in custom¬ 
house and one steam driven in appraisers’ warehouse: 
_ ($-) 

For rotary blower installed at both buildings and both electrically operated: 










198 


PNEUMATIC-TUBE SYSTEM. 


For piston compressors installed at both buildings and both electrically 
operated: 

__ ($ - ) 

For rotary blower at customhouse, electric driven, and piston compressor, 
steam driven, at appraisers’ warehouse: 

_ ($ - ) 

For rotary blower at customhouse and piston compressor at appraisers’ ware¬ 
house, both electric driven: 

_ ($ - ) 

Time to complete, day_, month-, year- 

Price per piece for carriers: 

_ ($ - ) 

Deduction from above-named lump sums if fiber conduit shall be accepted: 

___ ($ - ) 

Addition to above-named lump sums if fiber conduit shall be accepted: 

_ 

Name three places where 8-inch tubes with own apparatus as specified is 
in use: 

Name: Address: Length of time in service: 

1 _ _— __ 

2_ _ __ 

3_ _ _ 

Bidders are required to give the name and address of two or more, as indi¬ 
cated, different manufacturers and trade name or catalogue number of each 
of the following fixtures and materials which they propose to use, subject to 
approval of the Supervising Architect. The names of as many different manu¬ 
facturers must be stated as are called for. 

Two makes rotary blowers : 

1 _ 

2_ r _ 

Two makes piston compressors: 

1 _ 

2_ 

Two makes electric motors: 

1 _ 

2_ 

Two makes of steam engines: 

1 _ 

2 _ 

Type of valves for steam engine: 

Corliss _ 

Slide ___ 

Air pressure required to operate the tubes at 30-mile per hour rate: 

- pounds per square inch. 

Volume of air per minute, 30-mile per hour rate: 

-:- cubic feet. 

Power required at compressor shaft to compress 1,000 cubic feet free air per 
minute to operating pressure rotary blower: 

- horsepower. 

Power required at compressor shaft to compress 1,000 cubic feet of free air 
per minute to operating pressure, piston compressor: 


-horsepower. 

Displacement per minute rotary blower_cubic feet free air. 

Displacement per minute piston compressor_cubic feet free air 

Speed, rotary blower-revolutions per minute! 

Speed, piston compressor-revolutions per minute. 

Speed of motor for rotary blower_ 

Speed of motor for piston compressor_ 

Make of transmitting apparatus: 


Make of sending apparatus: 


Two makes of rheostats: 

1 _ 


















































PNEUMATIC-TUBE SYSTEM. 


199 


Two makes of circuit breaker: 

1 _ 

2 _r___i 

Two makes of ammeters: 

1 _ 

2.__1'" 

Guaranteed efficiencies of motors for rotary blowers: 

One-half load_ 

Four-fourths load_ 

Guaranteed efficiencies of motors for piston compressors: 

One-half load_ 

Four-fourths load_ 

Three makes of gate valves: 

I_ 

2._ 

3._ 

Three makes of globe and angle valves: 

i:___ 

2__ 

3 __ 

In determining which is the lowest bid, it is understood that the Government 

reserves the right in awarding the contract to deduct any separate amount 
named in the proposal for any item mentioned therein. 


NOTICE: A certified check must 
accompany this bid to entitle it to 
consideration. 


Signature 

Names of individual members of firm 


Address 


Name of corporation_ 

Name of president_ 

Name of secretary- 

Under what law corporation is organized 


COST OF PNEUMATIC-TUBE OPERATION. 

Appraisers’ Warehouse and Customhouse, 

New York , N. Y., June 4, 1912. 

The Supervising Architect, Treasury Department. 

Sir: I transmit herewith copy of my telegram of this date answering certain 
inquiries from you of same date regarding operation of customs pneumatic 
tubes between the United States appraisers’ warehouse and customhouse build¬ 
ings, New York, N. Y. There are also transmitted herewith a copy of memoran¬ 
dum' from the office of the collector of the port and a copy of memorandum 
from the appraiser of the port, both concerning said matter. These memo¬ 
randa are self-explanatory. 

I do not think the real value of the tube service can be gauged by comparison 
with cost of former messenger service any more than one could gauge the value 
of mail service performed by express trains with mail service using stage 
coaches, or transmission of mail by pneumatic tubes in cities with mail service 

by wagons. , „ . . . . . . , 

I may add that I have always assumed that ultimately this tube might be 

made to form a part of the postal system in New York City via a connection, 
let us say, between the foreign-mail station on the west side and the appiaiseis 

warehouse. A _ „ 

Rpqnpctfiillv Alfred Brooks Fry, 

P Supervising Chief Engineer. 



























200 


PNEUMATIC-TUBE SYSTEM. 


[Memo from Special Deputy Collector Stewart, in re pneumatic tubes, appraisers’ ware¬ 
house to customhouse. New York, N. Y.] 


June 4, 1912. 

Under messenger system as it existed prior to institution of the tube service 
three messengers were employed in conveying papers to and fro between the 
customhouse and the appraisers’ stores. Messages were dispatched half-hourly 
during the day. ' 

Under the tube system the regular transmission of papers to and fro is at 
half-hour intervals in the morning, when work is light, and at 15-minute inter¬ 
vals during the afternoon, when work is heavier. When work is unusually 
heavy or when there are papers of importance requiring immediate action, the 
regular intervals are disregarded, and papers are transmitted forthwith. 

Under the old messenger system the regular intervals could not be disre¬ 
garded. If there were papers to be transmitted “ special,” a special messenger 
had to be assigned. As at least an hour’s time would be consumed in going to 
and coming from the appraisers’ warehouse, and as there were always papers 
requiring special transmission, it is apparent that much extra labor was em¬ 
ployed and much time lost as compared with the tube. On the tube service 
three men are regularly employed, covering both the regular and the special 
service given under the old system, and producing much better results to both 
officials and the public. 

A special advantage, aside from those already indicated, is in the case of 
deliveries at the public stores, where the invoice must be sent to the collector 
for collection of an additional deposit before issuing a delivery order. The 
tube service permits such invoices to be sent down from the stores forthwith 
whenever deemed advisable. Under the old system a special messenger was 
required, and owing to lack of men this had to be confined to extreme cases. 
The benefit to the public in obtaining rapid deliveries is apparent. 

Letters and other documents may also now be transmitted immediately, 
where formerly they had to be sent by mail or special messenger, and where 
formerly several days’ time would be lost in sending such papers back and 
forth it can now be made a matter of minutes. Conservatively speaking, the 
present service is from 100 to 150 per cent better than the old. 

[Memorandum in re pneumatic tubes from Appraiser Bird.] 

June 4, 1912. 

My Dear Mr. Fry : Referring to your telephonic communication regarding 
the tube service between this building and the customhouse, that service is 
essential to the businesslike and expeditious conduct of business in this office. 
During the morning carriers run from this building to the customhouse, both 
ways, every 30 minutes. From 2 o’clock on they run every 15 minutes. Fur¬ 
ther, on any special matters requiring immediate action carriers are run at 
intermediate intervals. It takes 4 minutes for a carrier to get from here to 
the customhouse. This furnishes a prompt, continuous service from this build¬ 
ing to the customhouse. 

At one time there were 2 cabs and 2 messengers doing this work making 8 
trips per day. Later there w T ere substituted for this 3 messengers making 12 
trips per day. With the present volume of business I do not believe that 
3 messengers could do the work. Certainly the 3 messengers could not ade¬ 
quately do the work. 

The system of handling cases in the appraisers’ stores at the present time 
is such that it is essential that the invoices come to the appraisers’ stores 
before the cases arrive at the appraisers’ stores from the docks. As the im¬ 
porters hurry their permits to the docks from the customhouse, the invoices 
must be forwarded here rapidly to arrive here before the cases. Even under 
the present plan it does happen that cases arrive here before the invoices. If 
the tube service were discontinued and a messenger service substituted. T 
believe that it would be practically impossible to continue the present system 
of handling merchandise, w 7 hich has resulted in a very great improvement in 
the business done. 

Very truly, yours, 

Mr. Alfred Brooks Fry, 

Chief Engineer, Customhouse, New York, jV. Y. 


F. W. Bird, Appraiser. 


PNEUMATIC-TUBE SYSTEM. 


201 


DAiA CONCERNING GOVERNMENT-OWNED S-INCII DIAMETER PNEUMATIC TRANSMIS¬ 
SION TUBES BETWEEN UNITED STATES APPRAISERS’ WAREHOUSE ANI) UNITED 
STATES CUSTOMHOUSE, NEW YORK CITY, N. Y, 


New York, January 28, 1918. 

Hie route, which is diagonally across Battery Park and thence up Washington 
Street to the appraisers’ warehouse, is shown on attached plan. 

Tubes constructed during 1910 started for regular operation January, 1911: 


Appropriation for construction_ 

Contract cost, including electric conduit and all apparatus and 

equipment_ 

Number of tubes_ 

Length of each tube between outside building lines_feet_ 

Total length of each tube, including the lines in interior of build¬ 
ings, about-feet— 

One electric conduit, 4 inches in diameter, containing a pull 
wire was laid with these tubes. 


$175. 000 

174,150 
2 

10, S64 
11,000 


There is one set of transmitting apparatus and one set of 
receiving apparatus, of American Pneumatic Service Co.’s type, 
located in both appraisers’ warehouse and the customhouse. 

Number of rotary blowers (one steam driven, at appraisers’ ware¬ 
house; one electric driven, at customhouse)_ 2 

Maximum horsepower required for operation of each tube at 

maximum speed and capacity__ 55 

Total horsepower for circuit at maximum speed and capacity_ 110 

Maximum speed, say_miles— 30 

Air pressure required for 30-mile per hour speed_pounds— 8-9 

Volume of air per minute for 30-mile speed_cubic feet_ 1, 300-1, 400 

Average horsepower required for normal operation of each tube_ 25 

Total horsepower for circuit, normal use_ 50 

Normal speed of carriers, miles per hour_ 25 

Maximum practicable rate of dispatch of carriers, say, head¬ 


way_second-- 10 

Ordinary full-speed dispatch, headway_do- 15 


Average present normal dispatch of carriers between custom¬ 
house and appraisers’ warehouse is one every 4 minutes. 

It will thus be seen that if these tubes should be incorporated 
in the New York postal system their capacity could be easily 


increased. 


Annual cost of operation of this system. 


For electric power purchased at customhouse- 1 $1,502 

Cost of our generated steam power at United States appraisers’ 

warehouse, say- M0 

Annual cost of repairs and supplies, including new carriers- 672 

Wages of three operators- 2, 520 


Total cost, based on calendar year of 1912- 5, 691 


It is to be noted that without greatly increasing the operating expense the 
duty of these tubes could, as stated, be more than trebled if they were connected 
with the post-office system, experience showing that the increase in horsepower 
required does not largely increase with the number of carriers dispatched 
within reasonable limits, and it is obvious that an operator has to be paid his 
stipulated per diem wage whether he handles carriers at the rate of one in four 
minutes or four in one minute, although, of course, one man without relief 
could hardly keep up this rate of dispatch for eight hours. 

Contrary to the practice when first started, the customs authorities are now 
transmitting all the brokers’ documents and papers via these tubes, and as 
occasion requires the customs business of said tubes will obviously increase 

without reference to a possible future post-office connection. 

Alfred Brooks Fry. 


1 If we ourselves generated this current the cost of said electric power would he 
about $1,000, 


























202 


PNEUMATIC-TUBE SYSTEM. 


RECENT CONTRACT PRICES FOR TRENCH WORK IN STREETS—CURRENT PRICES OF 
ASPHALT AND BELGIAN BLOCKS, NEW YORK CITY, N. Y. 

New York, January 28, 1913. 


Excavation and back fill, per yard_$1. 50 

Restoration of asphalt surface, per yard_ 3. 50 

For pumping and sheet piling, where required, add per cubic yard of exca¬ 
vation_ 1.00 

For street protection, signals, and lights, per yard of excavation_ . 50 

Insurance and watch service, per cubic yard of excavation_ . 50 


Total cost of excavation per cubic yard, say_ 7. 00 

Plus for contractor’s profit, 25 per cent_ 1. 25 


8.25 

The foregoing is for asphalt. 

For Belgian block surface, from $1 to $1.50 less per square yard of surface 
disturbed. 

The above is figured on a trench 3 feet deep and 3 feet wide. 

For extra bury, equal to diameter of pipe, say, 50 cents per yard. 

The foregoing is for a trench 3 feet wide by 3 feet deep by 3 feet long, plus 
the bury of the pipe. This does not include any special conditions or repair 
of damage to existing structures, or making changes in existing structures to 
permit passage of pipes. 

For wood pavement and its foundations, as now installed, add 50 cents per 
yard. 


Thereupon, at 11.30 o’clock a. m., the commission went into an 
executive session. 


Memorandum of Jno. E. Milholland Respecting Hr story of Mail Tube 

System. 


The International Pneumatic Tube Co., 

Philadelphia, February 13, 1913. 


Senator Simon Guggenheim, 

Chairman of Commission to Investigate Pneumatic-Tube 

Postal System, United States Senate, Washington, D. C. 


Dear Sir : Inclosed please find some chapters from the financial history of the 
tube enterprise that may be of service to you and your colleagues in the inquiry 
that you are now making. 

You wdll perhaps recall that some emphasis was laid upon this matter by 
yourself, as well as Congressman Murdock, at our last somewhat informal 
hearing. Should you find that any points touched upon require further elabo¬ 
ration we shall be pleased to meet your wishes wherever possible. 

Very truly, yours, 


Jno. E. Milholland. 


Pneumatic Securities as an Investment—Some Chapters from the Finan¬ 
cial History of the Undertaking—Why it has Been Unattractive to 
Capitalists—The Menace of Short-Term Contracts. 

The financial history of the Philadelphia mail-tube system is the story of the 
first large tube enterprise of the world. 

This does not signify that it was a financial success; it was anything but 
that; its triumph was as an invention of great usefulness and a sound engi¬ 
neering proposition. 

At the close of the first five years the company was practically bankrupt, for 
in complying with the drastic conditions laid down by the Government in the 
original construction contracts and in consequence of the meager rentals al¬ 
lowed by the department the company had practically exhausted its capital and 
reached the end of its resources. 













PNEUMATIC-TUBE SYSTEM. 


203 


AN AMERICAN, NOT A FOREIGN INVENTION. 

But before entering upon a detailed account of this and succeeding periods 
there should be corrected an erroneous impression that prevails regarding the 
pneumatic tubes. Most people suppose the system employed here to be an 
importation. This is a mistake. The only systems in use to-day on the other 
side are those of the small tubes, 3 inches or less in diameter, which carry tele¬ 
grams, single letters, or messages in London, Paris, Berlin Vienna, and a few 
other foreign cities. 

TUBES HERE AND ABROAD. 

Any and all of these, however, are mere playthings in comparison with our 
post-office tube system, which is American in its invention and development. 
The 8-inch tubes, through which are transported the mails from the Pennsyl¬ 
vania Railroad Station to the Philadelphia post office, can carry more than 
7,000,000 letters a day, which exceeds the number carried by either the entire 
London or Berlin systems during the year of 1911, or far more than twice the 
business done by the famous “ Petit Bleu ” service of Paris in any year of its 
operation. 

PHILADELPHIA THE PIONEER OF PNEUMATICS. 

Not only is the large tube American in its origin, but Philadelphia can right¬ 
fully clam to be the place of its birth, for in Philadelphia the system was started 
nearly a score of years ago. Its famous inventor, Mr. Batcheller, was then a 
resident of the city. Another leading Philadelphian was then Postmaster Gen¬ 
eral, and the pneumatic-tube system really represents one of the various re¬ 
forms brought about in the Post Office Department under the administration 
of the Hon. John Wanamaker. 

THE ANTIQUATED MAIL WAGON DOOMED AT LAST. 

The antiquated character of city mail delivery had long been apparent. As 
a business man, Mr. Wanamaker could see no reason why speed should not be 
employed in the delivery of letters within the city limits just as eagerly as it 
is sought between cities and countries through subsidized mail trains and ocean 
steamers. In other words, he recognized the gap in the transportation develop¬ 
ment which that anachronism, the old mail wagon—that has been in use since 
the days when Oliver Cromwell reorganized the British post office—vainly tries 
to fill, but which really only add to the congestion of our overcrowded streets 
and avenues and overcrowding that is in no way lessened by the automobile 
or any other system of surface transportation. 

MR. WANAMAKER’S SERVICE TO THE ENTERPRISE. 

Believing the pneumatic tube or underground transport to be the solution of 
the mail and parcel-post problem in large cities, Mr. Wanamaker appealed to 
the inventive genius of the world, causing an advertisement to be published 
broadcast asking for competitive bids to construct a 6-inch tube line between 
the Philadelphia post office and the bourse. The conditions imposed were 
severe. No risk whatever was incurred by the Government. The successful 
bidder was required to build at his own expense. He had also to agree to 
serve the Government a year free of cost, and then, even if successful, the 
adoption of the service rested entirely with the Government. 

THE RISK TOO GREAT FOR CAPITAL. 

To realize the undesirability of pneumatic-tube securities at that time for 
investment, at least from the investor’s viewpoint, it is only necessary to refer 
to the report of Postmaster General Wanamaker for the year 1892, wherein 
mention is made that the first pneumatic tube for the transport of mail was 
being constructed in Philadelphia between the central post office and the East 
Chesinut Street Station, but under such terms that the Post Office Department 
can try the system for one year without expense, and may then rent, purchase, 
or reject it without incurring any liability. It can be easily understood that 
any body of men embarking in such a business, so placing their capital that 
even if attended with mechanical success their one and only customer might 


204 


PNEUMATIC-TUBE SYSTEM. 


fail them, while in the event of engineering failure the entire money put up 
would be lost, was not of a kind to attract investors, either conservative or 
those disposed to accept a small risk in the nature of the hazard of their 
principal for a high annual return thereon. 

INITIAL WORK OF THE PHILADELPHIA CO. 

The local company which had been formed to install the Batcheller system 
here, that is, the only really successful large tube system yet invented, having 
acquired the license for Pennsylvania from the parent company, was found to 
be the only one willing to meet these unprecedented requirements. But a com¬ 
pany so situated and embarking in such a hazardous enterprise had no credit. 
Its way became very difficult. Early it found that the enthusiasm animating 
its promoters was not at all shared by the investing public of Philadelphia, so 
after many futile efforts with the various banking houses and financial insti¬ 
tutions, it became necessary for the company to let a contract to a syndicate 
managed by the late W. J. Kelley for the construction of the line leading from 
the central post office to the East Chestnut Street postal station. The syndi¬ 
cate was to assume the burden of securing the necessary permits and franchises 
from the city of Philadelphia and receive in exchange for their undertaking 
the sum of $300,000, payable in the common stock of the company. To secure 
the requisite patents covering the terminal and other machinery used in the 
operation of the lines for the city of Philadelphia and a radius of 20 miles, 
including Camden, N. J., it was necessary to pay $200,000 in the common stock 
of the company to the inventor. 

SECRETARY HARROP’S PERSONAL EXPERIENCE. 

Mr. Charles T. Harrop, of J. T. Harrop & Son, a firm that has been estab¬ 
lished in Philadelphia since 1849, was secretary of the company in those early 
days of its life as he is to-day, has this to say of his experience in raising the 
initial capital: 

“ The project was entirely new. We had to ask for a franchise for a purpose 
practically unknown. Our difficulties seemed endless. One look at our con¬ 
tract with the Post Office Department was enough for the average investor— 
he fled. What money we secured was in small sums. I was glad to sell the 
stock at any price, even a dollar a share; that is, 10 per cent of its par value. 
Mr. Kelly nor one of the syndicate never made a dollar. 'Twas a losing game. 
The banks, bankers, saving funds, trust companies, life-insurance companies, 
and capitalists were visited but always they declined because of the inability of 
the company to guarantee a continuing contract. The small investors, many 
of whom still own their stock as originally subscribed for, are asking as to 
when they may hope for reimbursement for money paid into the project as 
many as 20 years ago. They deserve par if ever men did in this world. They 
ventured when merchants and men of large means when approached on the 
score of civic pride held back. One of the most ardent supporters of the tubes, 
the Hon. John Wanamaker, then Postmaster General, was prevented, as the 
head of the Postal Service, from lending his financial support, but he was 
then, as now, a strong advocate of the system. Mr. Kelly, president of the 
company, finally built, at his own expense, a factory for the purpose of boring 
the pipe and manufacturing the necessary transmission and receiving apparatus. 
He, like all the officers of the corporation, served absolutely without salary or 
compensation of any kind, and, so far as my experience goes, such salaries 
have never yet been paid in any manner. Mr. Kelly has been dead for several 
years and his estate still holds many thousands of dollars in securities of the 
Pneumatic Transit Co. for some of the amounts spent in the construction of 
the original tubes.” 


SMALL INVESTORS BUILT THE FIRST LINE. 

The money was raised almost entirely in Philadelphia, and, in the face of 
seemingly insurmountable obstacles, not the least being the “tube-boring” 
problem, a line was built between the post office and the bourse, and on Febru¬ 
ary 17. 1893. nearly 20 years ago, the first carrier containing the Bible, wrapped 
in an American flag, was sent through by Mr. Wanamaker. The line operated 
successfully from the beginning; it is working as well as ever to-day demon¬ 
strating through practical operation, the entire feasibility of transmitting mail 


PNEUMATIC-TUBE SYSTEM. 


205 


and merchandise by this means, an achievement which many engineers of 
Europe, after various futile, expensive efforts, 50 years ago, declared to be 
impossible. 

The mails were carried one year, March, 1893, to March, 1S94, free and 
then the Post Office Department, testing the system to the utmost, compelled 
the company to give four years’ additional service at the nominal rental of 
»,’o,400 a year, whereas, to operate a single mile of tube costs about ten times 
that sum. It was a losing proposition of from $10,000 to $12,000 a vear and 
nearly ruined the company. 

YEARLY OPERATIONS AT A LOSS. 

In 1898, when the lines from the central post office to the Broad Street 
station were built, it was necessary for the company to issue to the contractor 
some two hundred 20-year 5 per cent bonds of $1,000 each, in payment, and the 
contractor, in addition to building the lines, was obliged to satisfy a $30,000 
judgment which had been given to make up some of the operating losses of 
the company up to that time. The difficulty was that, owing to the short term 
of the contract, one, four, or even 10 years, the company was wholly without 
credit and unable to borrow money for, notwithstanding the increase in the 
length of the lines, the annual operation from 1898 until 1906 was conducted 
at a loss of approximately $5,000 per year. 

FAILURE OF CONGRESSIONAL APPROPRIATION—THE REASON. 

In the year 1901 the company was further handicapped by the failure of 
Congress to make an appropriation for the pneumatic-tube service, so that 
to the risk inherent in the Government’s possible failure to renew the contract, 
was added the additional deterrent that, notwithstanding the existence of a 
contract, if Congress should, for any reason, fail to make the necessary appro¬ 
priation to pay for the service, the tube property would become totally un¬ 
productive for the time being. Regarding this failure on the part of Congress 
to appropriate it is only pertinent to remark here that the appropriation for 
tubes was cut off; but upon the vigorous demand of the press, public, and the 
tube companies a Government commission was immediately appointed to in¬ 
quire into the subject. This commission, one most representative in char¬ 
acter, included besides 32 postmasters and leading experienced post-office 
officials, the following citizens: Theodore C. Search, chairman, president of the 
National Association of Manufacturers of the United States; Prof. Robert H. 
Thurston, of Cornell University; S. Christy Mead, of the Merchants’ Associa¬ 
tion of New York; William T. Manning, consulting engineer, United States 
public buildings; Frederick A. Halsey, associate editor of the American Ma¬ 
chinist; and Lyman E. Cooley, consulting and mechanical engineer. 

Their report was unanimously in favor of the tubes, and so emphatic that 
an immediate reinstatement of the system followed without a single dissent¬ 
ing vote in either House or Senate on the part of Democrats, Republicans, or In¬ 
dependents, extending the contracts from 4 to 10 years. 

In the year 1902, when the Posmaster General was authorized to enter into 
pneumatic-tube contracts for the period of four years, the financial condition 
of the pneumatic-tube business in Philadelphia was such as to render it im¬ 
possible to secure new capital with which to extend the lines until the fall of 
1905, when the lines running between the central post office and stations S 
and O were completed. 

In the year 1906 the Postmaster General was authorized to enter into 
pneumatic-tube contracts for the period of 10 years, in consequence of which 
change toward permanency, the pneumatic-tube mileage in Philadelphia in¬ 
creased about 250 per cent, or from 4 to 10 miles double lines; that is more 
mileage than had been built in the preceding dozen years. 

The present contracts under which the pneumatic-tube companies operate 
expire in 1916, or about three years hence. While the company is not now 
meeting with any difficulty in the operation of the existing system, it is not 
in a position to undertake any additional or new construction. This is due 
to the short period in which the contracts have to run, and, furthermore, the 
company realizes that its own stockholders have supported it to the point 
beyond which they are unable to go by enlarging their holdings. 


206 


PNEUMATIC-TUBE SYSTEM. 


REPRESENTS AS HONEST AN INVESTMENT AS ANY RAILROAD. 

Our stock and bond holders have securities which while they proportionately 
represent the investment of money, time, and labor in the production of a 
physical tangible property to as great, if not greater, extent than any industrial 
or railroad corporation in the United States, yet they are not able to realize 
on their investment, or to exercise the rights of ownership to any extent what¬ 
soever, when compared to the holders of the securities issued on any other 
form of property. 

While the holders of our bonds and preferred stock receive an income thereon 
regularly they are unable to use their securities to secure loans, as could be 
done if their securities were issued by any other corporation than a pneu¬ 
matic tube company that has made its investment in a business which has 
only one customer and its contract with that customer for only a short period. 
The result is that although they have invested in an enterprise that is sound 
to the core, they realize that it is not good business policy to increase their 
investment in a security which curtails their borrowing power to the extent 
of such investment. 


MR. HAYDEN’S TESTIMONY PRACTICAL 

Mr. Hayden in his testimony before the commission on December 2, 1912, 
stated that although their company was engaged in an independent enterprise 
separate and apart from their large pneumatic mail-tube business, when they 
offered for subscription to their shareholders a million and a half of 7 per 
cent preferred stock, preferred not only as to dividends but as to assets, they 
received an acceptance as to only 4 per cent of their offerings. When you 
consider that the annual return to the shape of net earnings from the small 
lube or commercial business of the American Pneumatic Tube Co. is almost 
three times more than the amount required to pay the dividends on the 7 per 
cent preferred stock offered for sale and that the return from all their busi¬ 
ness, including the mail tubes, is almost six times the amount necessary to 
meet the dividends on the preferred stock offered, it is not very hard to reach 
the conclusion that the investing public has a decided aversion to placing their 
money into pneumatic mail-tube enterprises, irrespective of how attractive the 
inducement may be. When an industry is so situated and the hazards, owing 
to short-term contracts, are such that it is unable to deal directly with a bank 
or the custodian of investment funds, but must look to individuals who are 
willing to tie up their capital for a long period and risk the hazard of its 
entire loss, then and in such case the industry must stand still, or the fettering 
conditions must be removed. 

THE RURAL MAIL DELIVERY-A COMPARISON. 

The rural mail delivery made its advent into the United States Postal Service 
at about the same year that the pneumatic mail tube was born, and to-day the 
Department spends some $47,000,000 per year on rural delivery, whereas the 
tube operation entails an expense of less than $1,000,000 per year in rental, 
although if all the cities in the United States having sufficient population to 
justify the tube service w^ere equipped, the annual tube expenditure would be 
nearer $10,000,000 than $1,000,000. In comparing the growth of the rural mail 
delivery with the tube service you must take into consideration the fact that 
the expenditure for rural delivery is primarily the payment of salaries to letter 
carriers, substitutes for carriers on annual leave, cleks in charge of substations, 
and tolls and ferriage, whereas for the payment of every dollar in pneumatic 
tube mail service means that someone must be found who is willing to invest 
$8.50 at least in supplying the pneumatic-tube service by the Government, as the 
proportion of the annual rental is to the approximate investment in pneumatic- 
tube systems as 81 is to 1. 

This investment of $8.50 to every dollar of rental must all be made prior to 
the receipt of a dollar of rental and must be made on a short-term contract, 
subject to the possible refusal of Congress to make the necessary appropriations 
which makes unproductive the investment and curtails if it does not destroy 
the credit of the investor, and gives him a form of property which is to a high 
degree unmarketable, besides it ranks extremely low as collateral for the 
security of any subsequent loan the investor may desire to make. 


PNEUMATIC-TUBE SYSTEM. 


207 


To recapitulate: It has been shown that throughout the 20 years since its 
inception the pneumatic tube enterprise has gone through those experiences 
peculiar to all great time-saving inventions or large undertakings which mark 
distinct advances in our civilization. Its experience, however, has been excep¬ 
tional in this, that while the Bell telephone and the Morse telegraph had also 
to go through ordeals that disheartened their projectors and almost wrecked 
them financially, they had the advantage of dealing with the people rather 
than, as in the case of the pneumatic tube, with one customer, that executive 
committee of the people called the Government. 

The Government is all right as a customer when the situation is thoroughly 
understood on both sides, but where doubt exists either in the department or 
in Congress or. what is far more dangerous, an imperfect knowledge of the 
facts, then the situation becomes serious, because in any dispute that arises 
the patriotism of the average man naturally leads him to side with the Gov¬ 
ernment inasmuch as the Government represents him. As a result havoc is 
frequently wrought more by the mistaken zeal of faithful uninformed public 
officials reasoning from insufficient data than by the plots and schemes of ill- 
disposed persons. 

The advantage, therefore, of such a commission as you represent is manifest. 
It would be still greater if such a commission could be made to assume perma¬ 
nent form for having possessed itself of a thorough knowledge of the whole 
question of the underground transportation—tubes, tunnels, and everything 
else—it could supervise the extension of this service and its future develop¬ 
ment to the advantage of the Government and in the meantime protect the in¬ 
terest of all concerned. In this case knowledge is not only power for good 
but safety for the man. be he a large or small investor, who puts his money 
into such an enterprise as the tubes. 

With a permanent commission in charge, with reasonable, businesslike con¬ 
tracts in operation assuring a fair return on the investment and the certainty 
of the principal coming back ultimately, there is no reason why the United 
States should not be provided within the next few years with a scientific sys¬ 
tem of underground transport in the large cities for handling the mails, parcel 
post, and deliveries of the shops and stores, no matter how large the volume 
may be from year to year. 

No fair-minded American citizen believes his Government, or any depart¬ 
ment of it, to be deliberately unjust, and it seems incredible, therefore, that 
your commission or any other would ever seek to take advantage of an enter¬ 
prise that has been wrought out with so much laborious effort by depriving 
those from getting back that which they have put into it either in the form of 
labor or that expression of accumulated labor which we designate as capital. 

Brief in Behalf of the American Pneumatic Service Co. 
i. government ownership. 

The more important question of Government ownership is not involved in 
this issue, inasmuch as the property under consideration is now used exclu¬ 
sively for the performance of a Government function in the transmission of 
the mails. In fact, these plants were constructed for the sole and exclusive 
use by the Government, and thus far have been operated under contracts by 
the owners, the performance of which has been under the supervision of the 
officials of the Post Office Department. The plants are an essential part of 
the equipment of the postal service, and could properly have been constructed 
by the Government originally, and therefore the question of Government 
ownership of utilities not absolutely essential for Government operation is not 
involved, for the reason that this equipment is essential for the performance 
of a function for which the Government was created. 

II. ADVANTAGES OF OWNERSHIP BY THE GOVERNMENT. 

It would appear wise that the Government should own and operate the 
equipment which is designed exclusively for its use rather than to have it 
owned and operated by individuals or corporations. In other words, is it not 
far more consistent for the purpose of government that this service should be 
performed by the officers and servants of the people, selected or appointed for 
that purpose, rather than under contracts with the owners of the equipment? 



208 


PNEUMATIC-TUBE SYSTEM. 


Under the present system the great mass of mail in our large cities passes 
from the actual possession of the postal department into the possession of the 
owners of the tubes, and is transmitted through these lines over which the 
Government has no control except under the provisions of the contract for serv¬ 
ice. In this particular branch of the postal service the Government neither 
owns nor operates the equipment which is used solely for the transmission of 
the mails. It is conceded, we believe, by all postal officials that these utilites 
ought to be owned and operated by the Government, and that this should be 
done, provided these plants can be acquired by purchase for a sum which would 
not increase the cost of operation to the Government over that now paid the 
owners for the service furnished. We believe it can be shown conclusively that 
any fair method adopted for the valuation of these plants would result in a 
purchase price which the Government could well afford to pay, and which 
would result in a saving over the amount paid under the contracts. 

III. PURCHASE PRICE. 

The commission is authorized to investigate the feasibility and desirability 
of the Government purchasing and operating the equipment for pneumatic-tube 
service, and also “ to ascertain the cost at which such purchase may be made.” 
The purchase price, of course, should be the fair and equitable value of the 
plants, but in order to determine that question fairly, due consideration must be 
given to the circumstances under which the plants have beeu constructed and 
are now being operated. These plants were built for the sole and exclusive use 
of the Postal Department; they are adapted for no other use-; their value is 
absolutely limited to such sum as may be obtained as net revenue under con¬ 
tracts with the Government for their use, or such purchase price as the Gov¬ 
ernment may be willing to pay to acquire the properties for its own use. The 
existing contracts will not expire until 1916,^ and, if we assume that renewal 
contracts can be made upon the same terms as those now in force, it is not diffi¬ 
cult to determine the value of these plants as going concerns, as the net earn¬ 
ings can be easily ascertained. These earnings for the last completed year 
under the contract amounted to $354,629. During that year certain permanent 
improvements were made to the plants and paid for out of the rentals received. 
It is fair to say that these permanent improvements amounted to at least $9,000. 
That amount added to the net earnings as they appear upon the books would 
make the total net earnnigs for the year ending in June, 1912, $363,629. If 
we capitalize that sum on a basis of 6 per cent the amount will be $6,000,000, 
which would be the value of the plants as going concerns, determined upon the 
basis of annual net earnings. 

If, on the other hand, we take into consideration the value of these plants to 
the Government after purchase, we find, according to the evidence submitted, 
that the Government will save $393,798 annually over and above what it is now 
paying under the contracts—that is, the Government by an investment of 
$6,000,000 will receive therefrom a net revenue amounting to $393,798, which, 
capitalized at 6 per cent, amounts to $6,500,000. These conclusions are reached 
by well-established methods of determining the value of commercial plants in 
actual operation. 

The actual cost to the owners and their predecessors of building these plants 
is not easily ascertainable. The cost to the present owner of the securities 
issued by the corporations owning these plants amounted to $7,250,000. The 
actual cost of building these plants can not be ascertained, for the reason that 
the present owners are not in possession of the figures which will show the cost 
of building a large part of the plant in New York City. However, neither the 
original cost nor the reproduction cost would be fair standards of determining 
the value of these properties. The courts have repeatedly held that original 
cost or cost of reproduction were not correct criterions to detemine the value 
of a plant in actual operation. In National Water Works Co. v. Kansas City, 
62 Federal, 853, Justice Brewer, in stating the conclusions of the court, says: 

“ The original cost of the construction can not control, for ‘ original cost ’ 
and ‘ present value ’ are not equivalent terms. Nor would the mere cost of 
reproducing the waterworks plant be a fair test, because that does not take 
into account the value which flows from the established connections between 
the pipes and the buildings of the city.” * * * 

It is undoubtedly true that if the Government had constructed these plants 
the cost would have been substantially the same as it has been to the corpora¬ 
tions building them. 


PNEUMATIC-TUBE SYSTEM. 


209 


The Wisconsin Railroad Commission, which has made a very careful study 
of the elements which ought to enter into the question of valuation, says, in 
Hill v. Antigo Water Co. (3 W. R. C. R., 623) : 

“ But new plants are seldom paying at the start. Several years are usually 
required before they obtain a sufficient amount of business or earnings to cover 
operating expenses, including depreciation and a reasonable rate of interest 
upon the investment. The amount by which the earnings fail to meet these 
requirements may thus be regarded as deficits from the operation. These defi¬ 
cits constitute the cost of building up the business of the plant. They are as 
much a part of the cost of building up the business as loss of interest during 
the construction of the plant is a part of the cost of its construction.” 

Our courts and commissions hold that original cost is not a correct standard 
by which to determine the value of a plant in operation. On the other hand, 
there is no decision by any of the courts or commissions which holds that repro¬ 
duction cost is a proper method of determining the value of a commercial plant 
in operation. The reproduction cost may be greater or less than the actual 
cost. It is greater than the actual cost in case of large appreciation in real 
estate, or in the increase of cost of material and labor, or in the increase of 
cost of construction due to change of conditions. On the other hand, the repro¬ 
duction cost may be less than the actual cost, and quite often is, due to the fact 
that large amounts have been lost in experimentation in efforts to perfect the 
plant and losses from failure to secure net earnings in the early period of the 
development of the plant, which deficit constitutes cost of building up the busi¬ 
ness of the plant. 

In all adjudicated cases where the reproduction cost has been taken into con¬ 
sideration a substantial amount has always been added to the cost of repro¬ 
duction as the value of a “going concern.” (See National Water Works Co. v. 
Kansas City, 62 Fed., 853; Newburyport Water Co. v. City of Newburyport, 
168 Mass., 542; Gloucester Water Supply Co. v. City of Gloucester, 179 Mass., 
365; Town of Bristol v. Bristol & Warren Water Works, 23 R. I., 274; Norwich 
Gas & Electric Light Co. v. City of Norwich, 75 Conn., 265; Galena Water Co. 
v. City of Galena, 74 Kans., 624; Kennebec Water District v. City of Water- 
ville, 97 Me., 185; Omaha v. Omaha Water Co., 218 U. S., 180.) 

It is not easy to determine the reproduction cost of these plants. If they 
were reproduced by private corporations, the expense of securing franchises 
would have to be taken into consideration, and also the possibility of securing 
franchises. If reproduced by the Government, the expense of securing fran¬ 
chises is not an element of cost, since no franchise is necessary. Whether re¬ 
produced by a private corporation or by the Government, the question of the 
value of the patents covering the various devices which enter into the plant 
becomes an element of cost. So in any event the value of the patents should be 
taken into consideration, and also the actual cost of constructing the plants, 
which must include also the profit of the contractor who is employed to build 
them. In other words, the cost of reproduction is the cost to the Government or 
the corporation of reproducing the plants in substantially the same condition 
that they are now in, and the profit of the contractor is a part of the cost of 
the plants. (See Falmouth v. Falmouth Water Co., 180 Mass., 325.) 

To this cost of reproduction must be added a substantial per cent to cover 
the value of the plants as going concerns, as determined by the methods adopted 
in the cases above cited. What that per cent should be is dependent upon 
many elements, but more especially upon the net earning basis of the plants in 
operation. While it may be possible to determine approximately the actual 
cost of building the plants, there are two elements of cost to be added which 
are not easily ascertainable. One is the value of patents and the other is the 
per cent which ought to be added to cover the value of established systems in 
operation, which the courts refer to as the “ value of going concerns.” How 
much ought to be added to the actual reproduction cost to cover those two 
elements, we are not prepared to say, but no one can say that these two ele¬ 
ments are not of substantial value. 

IV. ADVANTAGES OF PURCHASE AT THIS TIME. 

The figures presented by the engineers of the American Pneumatic Service Co. 
indicate that if the Government owned and operated these plants the cost of 
operation and maintenance would be something like $400,000 less annually than 
is now paid as rental to the owners of the plants. If we assume that that is 


78419—13-14 


210 


PNEUMATIC-TUBE SYSTEM. 


substantially the saving from Government operation, it would amount in the 
three years during which the contract has to run to $1,200,000, or 20 per cent 
of the cost of the plants at the price of $6,000,000. If we assume that these 
figures as to the annual saving be correct, then the saving by the Government 
in operation over that paid as rental to the owners would within the period 
of 15 years return to the Government the entire $6,000,000 paid. More than 
that, the Government would be in possession and control of its own equipment, 
and the mails would always be within the possession of the postal department 
while being transmitted. 

If the pneumatic-tube system is to be largely extended in the years to come, 
as now seems probable, it is far better that these extensions should be made 
under some settled policy of the postal department rather than under a policy 
which may have to be changed with the renewing of contracts with the owners 
made for a limited term of years. 

The representatives of the present owners have already stated to the com¬ 
mission the difficulty which they contend with in securing capital necessary 
to make extensions required by them under the terms of their contracts. Thus 
far all contracts made with the owners have been for a limited period—in no 
case exceeding 10 years. It has further been publicly claimed that the Post¬ 
master General had the right to terminate these contracts during the periods 
for which they were made, even though the owners had faithfully performed 
all the terms of their contracts. Contracts of such character render it almost 
impossible for the owners to secure the necessary capital for building large 
extensions. The difficulty of securing the capital is one of the principal rea¬ 
sons why the owners are desirous of selling these properties to the Government 
at a price less than their actual cost. 

The commission can well understand that, if the owners could enter into a 
contract with the Government for a long period—say of 40 or 50 years—their 
rights under which would be fully protected so long as they performed their 
part of the contract, then it would not be difficult to secure capital to make the 
required extensions. We assume, however, that it is not likely to be the policy 
of the Government to favor long-period contracts in connection with pneumatic 
equipment. The Post Office Department is already committed to the policy of 
sooner or later acquiring these plants, and it is the desire of the representatives 
of the owners to deal in an absolutely fair and generous manner with the 
Government in the matter of the sale and purchase of these properties. 

Respectfully submitted. 

Samuel L. Powers. 


Lists of Patents, Etc. 


American Pneumatic Service Co., 

Boston, February 7, 1913. 


Hon. Simon Guggenheim, 

United States Senate, Washington, D. C. 


Dear Sir : In reply to your letter of February 3 in relation to the list of 
patents this company submitted to the commission of which you are chairman, 
this list was prepared by our patent attorneys and in their judgment covers 
the general field of pneumatic mail-tube transmission. While some of these 
patents may not seem to apply to apparatus now in use for the Government 
mail service, it is almost an impossibility to eliminate them from the general 
field, as they all have a bearing in that field. We considered the complete list 
of patents furnished you as effective in protecting our methods and apparatus 
Very truly yours, 

Wm. H. Ames, President. 


Philadelphia, Pa., February 11, 1913. 

Senator Simon Guggenheim, 

Chairman Commission to Investigate 

Pneumatic Tube Postal System, Washington, D. C. 

Dear Sir: In conformity with the request contained in yours of the 3d 
instant, we have had our engineers go over the list of patents submitted by this 
company to your commission on January 8, 1913, and compile the inclosed list, 
specifying in detail the particulars in regard to the patents. 




PNEUMATIC-TUBE SYSTEM. 


211 


It must be taken into consideration that a company such as ours operating 
a patented system must own not only patents covering the devices actually in 
use but all others having any bearing thereon in order to be properly protected. 

Yours, respectfully, 

Pneumatic Transit Co., 

PerW. P. J. Murray, 

Treasurer. 

Lists of Patents the Rights for Which Within the Territory of Philadel¬ 
phia and Camden, N. J., Are Owned by the Pneumatic Transit Co., With 

Explanatory Memoranda. 

567087. Screen carrier lid of a type formerly used upon the Bourse line. 

568291. Pneumatic-tube receiver for terminal points in which the carrier is brought 
to rest by compressing the air in a normally closed chamber provided with a gate, which 
is set in operation to permit the exit of the carrier by the pressure created by the 
carrier in the closed chamber as aforesaid. In use at the central post office, Philadel¬ 
phia (Bourse line). All gated receivers operate upon this principle. 

585498. Pneumatic-tube receiver for use at points other than terminal points, 
tilting-tube type. Receivers of this type are in operation at the Bourse and Reading 
Terminal Stations, Philadelphia. This patent covers also a pneumatic-tube trans¬ 
mitter of the rotary type, formerly used upon the Bourse line, Philadelphia, and a 
time lock of the oil type for governing the interval between the carriers, the time-lock 
operating upon a principle that characterizes most of those now in use. 

585647. Pneumatic circuit closer for enabling a pneumatic-tube carrier to give an 
indication of its passing a certain point by closing an electric circuit. The special 
feature of this device is that it is free from projecting parts to be struck by the carrier. 

590181. Bearing rings for pneumatic-tube carrier, to fill the space between the 
shell of the carrier and the tube and take the wear of travel. All carriers used in the 
mail service are provided with bearing rings made in accordance with principles first 
disclosed in this patent. 

595754. Device for locking the pneumatic-tube transmitter at an intermediate 
station, actuated by an approaching carrier to prevent the dispatch of a carrier from 
the station until the first-mentioned carrier has passed. 

595755. Pneumatic-tube receiver for intermediate stations automatically selecting 
and delivering carriers intended for its station while allowing others to pass. 

595756. Transmitter for pneumatic tubes, swinging-cradle type. In use at the 
Bourse and North Philadelphia stations. 

602422. Chronograph, used for locating obstructions in pneumatic tubes. 

623968. An automatic switch for pneumatic tubes. 

623969. A cut-out switch for pneumatic tubes, to be used at intermediate stations 
when it is desired to temporarily cut them out of operation. Formerly used at the 
Reading Terminal Station, Philadelphia. 

623971. Improvement in mechanism for operating swinging-cradle transmitter, 
used at the Bourse and North Philadelphia stations. 

623972. Lid for pneumatic carrier, used upon the Bourse line, Philadelphia. 

623973. Improvement in the pneumatic-tube receiver of the tilting-tube type 
used at the Reading Station, Philadelphia. This is a standard type for terminal sta¬ 
tions where the service is light. 

657078. Packing device for annular joint, especially adapted for preventing escape 
of air in pneumatic-tube apparatus. In use upon swinging-cradle transmitters and 
tilting-tube receivers, Philadelphia. 

657077. Inner carrier for pneumatic-tube carriers, for better protection of mail 
that is registered. 

666175. Closing length for pneumatic tubes used in the construction of all recent 
lines. 

700607. Transmitter for pneumatic tubes, gravity type, a type that is now used 
almost universally. 

706291. Receiver for pneumatic tubes, centrifugal type. Brings the carrier to 
rest by means of the friction induced by centrifugal force. This receiver permits a 
very high frequency of dispatch and is especially suitable for busy lines, used exten¬ 
sively in Philadelphia. 

707071. Pneumatic time lock for pneumatic tube transmitters. 

721476. Apparatus for locating leaks and breaks in pneumatic tubes. Has proven 
useful on one or two occasions. 

722667. Improvements upon the automatically selective receiver covered by 
patent No. 595755. This is considered one of the most remarkable pieces of 


212 


PNEUMATIC-TUBE SYSTEM. 


mechanism ever produced. The inventor, Mr. B. C. Batcheller, was awarded a gold 
medal by the Franklin Institute. It was in operation at the Reading Terminal Station 
for nearly 10 years, until the present direct line to that station was constructed. In 
use at the Wall Street Station, New York. 

746266. Transmitter for pneumatic tubes, vertical, double-gated type. 

746267. Circuit closer for pneumatic tube, to enable the carrier to indicate its passage 
of a certain point by the closing of an electric circuit. 

683022. These two patents are for the receivers of the single-gated type and repre¬ 
sent steps in its development toward the standard design now extensively used in 
New York and elsewhere. These patents disclose principles more or less essential to 
the operation of the latest single-gated receiver. 

635434, 684715, 689043, 742516, 772973, 775949, 784225, 790456, 790457. This 
group of patents represent the successive steps in the development of the double¬ 
gated receiver now in extensive use in New York and elsewhere. The principles 
disclosed by these patents are all more or less essential to the operation of this type 
of receiver. 

627181, 666747, 726012, 726022, 726097. These patents represent efforts to improve 
the carrier especially with reference to reducing its friction and increasing its wear¬ 
ing qualities. Carriers of the wheeled type are in use in Boston, though not at present 
favored. 

654690, 698830, 703121. These patents are for devices applicable more particu¬ 
larly to tubes of small diameter, such as might be used to supplement the large tubes. 

683141, 683387, 684674, 706639, 742514, 758569, 760658, 760659, 768031,783151, 800884. 
This group of patents represent efforts to improve the type of transmitting and re¬ 
ceiving mechanism along alternative lines. While none of these devices are at 
present in use, they may be useful in special cases. 

722562, 742390, 768030, 779638, 780595, 796263. This list of patents represent steps 
in the development of the present highly perfected carrier lid now in universal use 
upon the mail tube lines. 

742513, 742515, 742517. These patents represent modification of the transmitter 
of the gravity type, first disclosed in patent No. 700607. 

782106. Special tachometer carrier for measuring the distance to an obstruction. 

1040811. Form of tunnel section for the system of automatic electric dispatch. 

1040810. Mounting of electric motor upon the car used in connection with the 
automatic electric dispatch system. 

Serial No. 693974. Buffer for electric dispatch car. 

Serial No. 581208. Method of automatic control of electric dispatch cars. 

Serial No. 693973. Automatic block system for regulation of electric dispatch 
cars. 

It should be noted that it is principles and not devices that are made the subject 

of patents, consequently the patented device as finally used may look very different 

from the drawing in the patent. Furthermore, a device although constructed in 

strict accordance with a perfectly valid patent may infringe an earlier patent which 

discloses nothing at all resembling the device in question. For these reasons, it 

would be difficult to tell which of the foregoing patents are essential to the pneumatic- 

tube systems as now operated. Only the courts could decide that. It would be still 

more difficult to say which of them may be required in the future. 

« 


REPORT OF AMERICAN AUDIT COMPANY. 

Pneumatic Transit Co., of Philadelphia—Statements of Total Cost of Con¬ 
struction to December 31, 1912, and Cost of Operating for Five Years 
ended December 31, 1912, of Pneumatic-Tube Service for United States 
Mail in the City of Philadelphia, Pa. 

Philadelphia, Pa., February 14, 1913. 

Hon. Simon Guggenheim, 

Chairman Joint Commission of the Senate and House of Representatives of the United 
States to Investigate the Pneumatic-tube Postal System, Washington, I). C. 

Sir: In accordance with the authority contained in your letter of January 17, 
1913, we have examined the books and accounts of the Pneumatic Transit Co., of 
Philadelphia, Pa., in connection with the cost of operating pneumatic-tube mail 
service for the five years ended December 31, 1912, together with the cost of con¬ 
struction of same. 

COST OF OPERATION. 

Exhibit A. Summary of operation and profit and loss for the five years ended 
December 31, 1912. 



PNEUMATIC-TUBE SYSTEM. 213 

Exhibit B. Statement of cost of operating pneumatic-tube service for the five 
years ended December 31, 1912. 

The total rental received from the Government during the period under review was 
$736,177.57, and the cost of operating same was $382,160.75, showing a profit to 
the company of $354,016.82. From these profits the company deducts the cost of 
insurance, bond, and other interest, taxes, and depreciation, amounting in all to 
$83,886.29, leaving a net profit of $270,130.53. 

Out of these profits the company has paid dividends on preferred stock amounting 
to $224,026. 

As Exhibits A and B are self-explanatory, it has not been deemed necessary to 
further comment on the question of operation. 

COST OF CONSTRUCTION. 

The books of the company show the following charges to construction account: 


Bourse Station (common stock). $300, 000. 00 

Broad Street Station (bonds). 200, 000. 00 

Stations S and O (preferred stock). 160, 000.00 

Stations J and C (preferred stock). 200, 000.00 

Stations S and D (preferred stock). 235, 000.00 

Reading Terminal Station (preferred stock). 20, 000.00 

Fairhill and North Philadelphia (preferred stock). 199, 750. 00 

S and O alterations (cash). 4, 880. 35 


Making a total of. 1,319,630.35 


No information is contained on the books of the company as to the cost of the Bourse 
Station line, other than $300,000 par value of common stock was issued to the late 
William J. Kelly for the construction of this line. 

We are informed by Mr. Milholland that the best information obtainable is that 
the actual cost to Mr. Kelly of the construction of this line was $42,000, and it so 
appears in the testimony given before your commission by W. P. J. Murray, the 
treasurer of the Pneumatic Transit Co. 

The cost to the company of the Broad Street line was, as stated above, $200,000 
in bonds of the company. No other information is obtainable from their books. We 
were informed by Mr. Milholland that the proceeds of these bonds were used to pay 
debts of the corporation as well as the cost of actual construction. No information 
is obtainable at this time as to the actual cost of the construction. It appears, how¬ 
ever, from the tabulated statements discussed by Mr. Murray before your commission, 
and appended to his testimony, that the cost of construction amounted to approxi¬ 
mately $60,000. 

Lines S and O, J and C, S and D, and Reading Terminal were built under contracts 
with the Batcheller Pneumatic Tube Co., for which they received $615,000 par value 
of preferred stock of the Pneumatic Transit Co., as above noted. An examination 
of the books of the former company shows that no attempt was made to keep the cost 
of the construction of these four lines separate. Their books, however, show that a 
profit of $176,590.88 was made on this construction. 

During the period of the construction the accounts of the Batcheller Co. were under 
the charge of M. B. Riffo, who, we are informed, was a defaulter for upward of $40,000 
from the"company, and on or about June 4, 1908, was arrested on a charge of forgery and 
embezzlement. Many of the records, so we have been informed, were destroyed and 
falsified by this man Riffo. Public accountants were called in by the company, and 
the books were straightened up to the best of their ability, and new balances brought 
down. It is claimed by the company, and it so appears to us, that the records are very 
incomplete and unreliable, owing to the manipulation just mentioned. It is further 
claimed by Mr. Milholland that large sums of money which should have been charged 
to these contracts were omitted. We can only present this matter to you as we found it 
for your consideration. 

The line from Fairhill to North Philadelphia was constructed for the company at a 
cost of $199,750 par value of their preferred stock. We submit herewith Exhibit C, 
cost of construction of tube system, starting from station O to Fairhill, to North Phila¬ 
delphia Station, which shows the actual cost to have been $96,793.71. It is claimed 
by the company that this line was built by their own engineers; that, in addition to the 
physical conditions being extremely favorable, they were also able to take advantage 
of an unusual condition in the market and purchase their material at a much less 
figure than they have been able to do before or since. They therefore claim this 
particular piece of construction is not a fair one to use as a comparison. The total cost 
per mile figures $53,833, as against their engineer’s estimate for lines J and C of $81,350 
per mile. 












214 


PNEUMATIC-TUBE SYSTEM. 


In the engineer’s estimate, which we are submitting herewith as Exhibit D, it will 
be noted that there are charges for “Station equipment” for Broad Street Station 
and stations «T and C amounting to about $60,000, as against a charge of approximately 
$23,000 for “Station equipment” as shown in Exhibit C (Fairhill and North Phila¬ 
delphia Station). Our conclusions are that only an appraisal of the physical property 
will give you any authentic information as to the actual cost of this construction. 

From the above it will be noted that the charge to construction account on the com¬ 
pany’s books is approximately $1,123,000, while the actual direct cost was approxi¬ 
mately as follows: 


Bourse Station. $42,000 

Broad Street Station... 60, 000 

Stations S and O, J and C, S and D, Reading Terminal Station. 439, 000 

Fairhill and North Philadelphia. 97, 000 

S and O alterations. 5, 000 


Making a total of 


643,000 


You will understand, of course, that these figures do not include any charges for 
interest, franchises, etc. 

We notice on reading over the testimony given by Mr. Murray before your commis¬ 
sion on January 8, 1913, he states that preferred stock amounting to $996,900 was 
outstanding at that date. The books of the company show that on December 31, 
1912, there was $103,100 out of a total authorized issue of $1,000,000 par value preferred 
stock still in the treasury of the company, leaving the net amount outstanding at that 
date of $896,900. Mr. Murray informs us that on or about January 5, 1913, the com¬ 
pany authorized the issuance of $100,000 of the company’s preferred stock to be used 
for obtaining electric tunnel rights for the city of Philadelphia and adjacent terri¬ 
tory. This accounts for the difference between the figures shown in his testimony 
and those appearing on the books at December 31, 1912. 

In compiling the figures submitted herewith we have made a careful analysis of 
the various ledger accounts, but have not made a detailed audit of such data. 

We are pleased to say that every facility was given us by the officers and employees 
of the company to obtain the data submitted herewith. In addition to the books of 
the Pneumatic Transit Co., they placed at our disposal the books of the Batcheller 
Pneumatic Tube Co., and also reports of public accountants who had been over their 
books at various times; otherwise it would have been impossible for us to have com¬ 
pleted our examination in the time at our disposal. 

Respectfully submitted. 

[seal. j The American Audit Co., 

By F. W. Rood, 

Resident Manager. 

Approved: Theo. Cocheu, Jr., 

Vice President. 

Attest - 


Exhibit A. 


A. F. Lafrentz, 

Assistant Secretary. 


Summary of operation and profit and loss for the five years ended December 31st, 1912. 



1908 

1909 

1910 

1911 

1912 

Total. 

Rental from United States 
Government.. 

$105,609.55 

61,134.79 

$135,333.07 

75,122.95 

$155,319.14 

84,167. 65 

$169,917.51 

83,296.92 

$169,998.30 

78,438.44 

$736,177. 57 

382,160.75 

Power, operating and general 
expense (see Exhibit B).... 

Gross operating profit.. 

Deduct: 

Insurance. 

44,474.76 

60,210.12 

71,151.49 

86,620. 59 

91,559.86 

354,016.82 

119.56 

10,000.00 
1,722.89 
3,050.00 



106. 66 

10,300.41 
2,754.21 
4,578.11 

76.99 

10,879. 29 
2,791.08 
4,662.50 

303.21 

51,179. 70 
12,165. 88 
20,237.50 

Interest (including $10,000 
bond interest per year). 
Taxes. 

10,000.00 
2,443.45 
3,762.50 

10,000.00 
2,454.25 
4,184. 39 

Depreciation. 

IN et profit for 5 years 
ended Dec. 31,1912... 

14,892.45 

16,205.95 

16,638.64 

17,739.39 

18,409.86 

83,886.29 

29,582.31 

44,004.17 

54,512. 85 

68,881.20 

73,150.00 

270,130.53 































































PNEUMATIC-TUBE SYSTEM 


215 


Exhibit B. 


Statement of cost of operating pneumatic-tube service for United States mail for the Jive 
years ended Dec. 31, 1908, 1909, 1910, 1911, and 1912. 



1908 

1909 

1910 

1911 

1912 

Total. 

Power: 

Electricity purchased.... 
Power regulator royalties. 

Total... 

Operating: 

Labor. 

Oil and waste. 

Linemen’s expense. 

Wagon service. 

Freight and hauling. 

Repairs— 

Line. 

Machinery. 

Carriers. 

$21,772.63 

$40,620.99 

$42,128. 68 

$44,560.31 

$31,235.30 
7,957. 72 

$180,317.91 

7,957.72 





21,772.63 

40,620.99 

42,128.68 

44,560.31 

39,193.02 

188,275.63 

17,373.62 
1,387.85 
117.23 
223.50 
603. 73 

280. 49 
832. 82 
1,715.89 
5,719.77 

21,976.59 
599. 43 
273.65 

144.56 

501.26 

1,738.91 
88.55 
1,291.82 

24.971.43 
753. 84 
440.61 
135. 00 
258.55 

681.54 

1,644.61 

26,602. 21 
705.41 
369.05 
184. 20 
228.51 

883.34 
1,681.93 

26,060.89 
610.69 
395.20 
273.50 
209. 77 

1,624.92 
3,113.18 

116,984.74 
4,057. 22 
1,595.74 
816.20 
1,445.12 

3,971.55 

9,011.45 

1,804.44 

11,256.48 

Shop labor, etc. 

Total. 

General: 

Salaries. 

Postage and stationery... 

Rent. 

Telephones. 

Miscellaneous. 

Legal expense. 

Total general. 

Grand total. 

1,598.90 

1,075.61 

1,570.38 

28,254. 90 

26,614.77 

30,484.48 

31,730. 26 

33,858.53 

150,942.94 

3,976,54 
442.19 
1,845.80 
1,186.66 
1,813.77 
1,842.30 

2,725.25 
180.54 
2,377.75 
707. 58 
993.13 
902.94 

5,110.13 
276.58 
1,856.39 
1,041.03 
2.300.61 
969. 75 

3,126.25 
130. 26 
1,637.64 
612.40 
716.26 
783.54 

1.588.97 
115.99 

1.937.97 
414. 78 
723.40 
605. 78 

16,527.14 

1,145.56 

9,655.55 

3,962.45 

6,547.17 

5,104.31 

11,107.26 

7,887.19 

11,554.49 

7,006.35 

5,386.89 

42,942.18 

61,134. 79 

75,122.95 

84,167.65 

83,296.92 

78,438. 44 

382,160. 75 


Exhibit C. 


Batcheller Pneumatic Tube Co. 


Cost of construction of tube system, starting from Station 0 to Fairhill, to North Phila¬ 
delphia Station. 

[Constructed in 1910 and 1911.] 


ANALYSIS OF CONSTRUCTION ACCOUNT. 


Sundry items posted direct: 

Mar. 23, 1910, O. J. Evers, cash paid in settlement of con¬ 


tract.$2,000. 00 

Aug. 1, 1910, petty cash. -50 

Nov. 30, 1910, petty cash. 6. 49 

Dec. 31, 1910, petty cash. 3. 00 

Jan. 20, 1911, petty cash. 32. 00 

Mar. 31, 1911, petty cash. .69 

Mar. 31, 1911, correcting entry. 83. 50 


Operating accounts closed out Mar. 31, 1911: 

Rents.*. 

General expense. 

Plant and inspection. 

General supplies. 

Terminal machinery. 

Power machinery. 

Line materials. 

Street work. $20, 928. 82 

Less credits. 908. 83 


Street contingencies 

Manholes. 

Street conduits. 


207. 00 
776. 56 
2, 555. 20 
64.17 
8, 722. 64 
12, 305. 59 
26, 738. 24 


20, 019. 99 
643. 74 
1, 214. 25 
1, 826. 26 


$2,126.18 















































































































216 


PNEUMATIC-TUBE SYSTEM. 


Operating accounts closed out Mar. 31, 1911—Continued. 

Repairing. 

Alteration of stations.. 

Piping. 

Wiring. 

Foundations. 

Installation of machinery. 

Stations, miscellaneous. 

Equipment of stations. 

Freight and hauling. 

Painting. 

Contractor’s profit, 10 per cent. 


$1, 050. 58 
718. 23 
2, 570. 64 
426. 94 
218. 98 
27. 55 
26.18 
1, 327. 20 
4, 384. 56 
51.19 

-$85, 875. 69 

. 8, 791. 84 


96, 793. 71 

Length of line, 1.798 miles. 

Cost per mile (say), $53,833. 

Exhibit D. 


PNEUMATIC TRANSIT COMPANY. 

Engineer's statement of cost of 8 -inch pneumatic tube line connecting the Broad Street 

Station with Stations J and C, in Philadelphia. 


[Constructed in 1907.] 


Station equipment (terminal machinery, air compressors, 


electric motors, etc.): 

Broad Street Station.•, $20,141. 89 

Station J. 24,680.93 

Station C. 14, 947. 96 


Line materials (tubing, bends, etc.). 

Line work (excavation, laying tubing, repaving, etc.). 

Freight and cartage. 

Line equipment (carriers, etc.). 

Plans and inspection. 

Office and general expense (rent, bookkeeping, telephones, chief engi¬ 
neer’s salary, etc.). 


$59, 770. 78 
42, 954. 06 
58, 853. 22 
571. 67 
2 , 200 . 00 
2, 725. 33 

6, 062.15 


173 137. 21 

Length of line, 2.1282 miles. 

Estimated cost per mile, $81,350. 


American Pneumatic Service Company. 

STATEMENTS OF TOTAL COST OF CONSTRUCTION TO DECEMBER 31, 1912, AND COST OF 
OPERATING FOR FIVE YEARS ENDED MARCH 31, 1912, OF PNEUMATIC-TUBE SERV¬ 
ICE FOR UNITED STATES MAIL IN THE CITIES OF BOSTON, NEW YORK, BROOKLYN, 
CHICAGO, AND ST. LOUIS. 

Boston, February 14 , 1913. 

Hon. Simon Guggenheim, 

Chairman Joint Commission of the Senate and 

House of Representatives of the United States to 

Investigate the Pneumatic-Tube Postal System, Washington , D. C. 

Sir: In accordance with instructions contained in your letter of January 17, 1913, 
we have made an examination of the books and accounts of the American Pneumatic 
Service Co., whose home office is at 161 Devonshire Street, Boston, Mass., which com¬ 
pany owns and controls either directly or through subsidiary companies the pneumatic- 
tube service for United States mails in the cities of Boston, New York, Brooklyn, 
Chicago, and St. Louis. As a result of our examination we submit herewith the fol¬ 
lowing exhibits and schedules, showing the cost of operating the tubes for the five 
years ended March 31, 1912, and the cost of construction of said tubes to December 31, 
1912: 

Exhibit A. Summary of operation and profit and loss of subsidiary companies for 
the five years ended March 31, 1912. 

Exhibit B. Statement of cost of operating pneumatic tube service of subsidiary 
companies for the five years ended March 31, 1912. 



























PNEUMATIC-TUBE SYSTEM. 


217 


Exhibit ( . Statement of profit and loss of subsidiary companies for the five years 
ended March 31, 1912. 

Exhibit D. Profit and loss account, Boston Pneumatic Transit Co., for the five years 
ended March 31, 1912. 

Exhibit E. Profit and loss account, New York Pneumatic Service Co., for the five 
years ended March 31, 1912. 

Exhibit F. Profit and loss account, New York Mail & Newspaper Transportation 
Co., for the five years ended March 31, 1912. 

Exhibit G. Profit and loss account, Chicago Pneumatic Tube Co., for the five years 
ended March 31, 1912. 

Exhibit H. Profit and loss account, St. Louis Pneumatic Tube Co., for the five 
years ended March 31, 1912. 

Schedule No. 1. Statement of cost of operating pneumatic-tube service, Boston 
Pneumatic Transit Co., for the five years ended March 31, 1912. 

Schedule No. 2. Statement of cost of operating pneumatic-tube service, New York 
Pneumatic Service Co., for the five years ended March 31, 1912. 

Schedule No. 3. Statement of cost of operating pneumatic-tube service, Chicago 
Pneumatic Tube Co., for the five years ended March 31, 1912. 

Schedule No. 4. Statement of cost of operating pneumatic-tube service, St. Louis 
Pneumatic Tube Co., for the five years ended March 31, 1912. 

. Schedule No. 5. Statement of cost of operating pneumatic-tube service of all sub¬ 
sidiary companies for the year ended March 31, 1908. 

Schedule No.. 6. Statement of cost of operating pneumatic-tube service of all sub¬ 
sidiary companies for the year ended March 31, 1909. 

. Schedule No.. 7. Statement of cost of operating pneumatic-tube service of all sub¬ 
sidiary companies for the year ended March 31, 1910. 

. Schedule No. 8. Statement of cost of operating pneumatic-tube service of all sub¬ 
sidiary companies for the year ended March 31, 1911. 

. Schedule No. 9. Statement of cost of operating pneumatic-tube service of all sub¬ 
sidiary companies for the year ended March 31, 1912. 

Exhibit I. Summary of construction charges to December 31, 1912. 

Exhibit J. Construction charges for Boston tubes to December 31, 1912. 

Exhibit K. Construction charges for New York and Brooklyn tubes to December 
31, 1912. 

Exhibit L. Construction charges for Chicago tubes to December 31, 1912. 

Exhibit M. Construction charges for St. Louis tubes to December 31, 1912. 

Exhibit N. Tubular Dispatch Co. property, franchises, patents, and construction 
account. 

COST OF OPERATING. 

The total income from operations for the five years ended March 31, 1912, was 
$3,021,657.02, the direct operating charges were $1,663,379.21, leaving a gross profit 
of $1,358,277.81, to which should be added net income from small tube lines of $11,- 
692.83, making the gross income from operating $1,369,970.64. From this amount the 
company has deducted bond premium, insurance, interest, taxes, and depreciation, 
amounting to $1,166,202.58, leaving a net amount credited to their profit and loss 
account of $203,768.06. 

In connection with the operating accounts, as shown in our exhibits and schedules, 
we believe the same are self-explanatory and need no further comment other than 
as to the items charged as bond premiums, amounting to $23,124.33. We are informed 
that the parent company is obliged to furnish bonds to the Government for the faithful 
performance of the contracts for pneumatic-tube mail service. They, in turn, make 
a charge against the subsidiary companies for these bonds, and, as we understand, this 
does not represent a cash outlay by the American Pneumatic Service Co., but is an 
arbitrary charge against the operating companies. 

CONSTRUCTION ACCOUNTS. 

Exhibit I is a summary of the construction charges to December 31, 1912, as 
appear on the various ledgers of the subsidiary companies, and shows the total cost 
of all lines to be as follows: 


Boston. $399, 585. 80 

New York and Brooklyn. 3, 244, 648. 30 

Chicago. 905,188. 76 

St. Louis. 149,489.11 


Total 


4, 698,911.97 








218 


PNEUMATIC-TUBE SYSTEM. 


Without considering the parent company’s charge for profit and loss, Exhibits 
J to M show the detail of these construction charges. With the exception of New 
York and Brooklyn, we were able to obtain the actual construction cost. 

Referring to Exhibit K, it will be found that the original construction of the New 
York and Brooklyn tubes was done under contract by C. J. Ryan & Co. for the 
Tubular Dispatch Co., and by Belden & Co. for the New York Mail & Newspaper 
Transportation Co. The Ryan contract was settled for $590,000, $100,000 of which 
was paid in stock. The Belden contract amounted to $400,000, and was paid $200,000 
in stock and $200,000 in bonds of the New York Mail & Newspaper Transportation 
Co. We have therefore been compelled to take these two construction charges to 
account at their face value, and have included these charges in “Direct Construction ” 
items as shown on Exhibit I. 

At the beginning of our examination we were furnished with printed copies of the 
report of the Pneumatic Tube Commission to the Postmaster General under date of 
December 10, 1908. Referring to page 48 of this report, we note that the company 
and committee estimated the cost of constructing the New York and Brooklyn 
System to have been $4,534,890.02; the total as shown by us in Exhibits I and K 
is but $3,244,648.30, which includes construction charges of very large amounts which 
had not been made at the date of the printed report referred to. Undoubtedly, the 
company’s and committee’s estimate included some, if not all, of the charges shown 
at that time under “ Property, Franchises, Patents and Construction ” accounts on the 
Tubular Dispatch Company’s books. 

Our Exhibit N shows the detail of the charges to that account, and amount to 
$2,143,681.43. We are informed that the Tubular Dispatch Co. went into liquida¬ 
tion, and their assets were sold at public sale. These assets were acquired by the 
New York Pneumatic Service Co., and the entire capital stock of this latter com¬ 
pany, amounting to $300,000, was issued against same. The New York Pneumatic 
Service Co. is now known as the Operating Company, and the New York Mail & 
Newspaper Transportation Co. is the owner of the constructed lines. In showing 
the cost of the New York and Brooklyn tubes, we have considered the $590,000 paid 
to C. J. Ryan & Co. under their contract as a part of this cost. 

On referring to the first entry on the New York Mail & Newspaper Transportation 
Co.’s books, showing cost of property, franchises, patents and construction, we find 
that 6,050 shares of capital stock was issued to the Tubular Dispatch Co., and the par 
value, being $605,000, was charged against cost of construction. We have assumed that 
this item covers the Ryan contract, and as we have already taken the Ryan contract 
to account at $590,000, we take the balance ($15,000) to account as an additional cost 
of construction. We have not, however, considered the $300,000 of capital stock of 
the New York Pneumatic Service Co., which was issued for the property of the Tubular 
Dispatch Co. as a charge against cost of construction. 

Owing to the extremely limited time given us by your committee to make this exami¬ 
nation, we have made a careful analysis of the construction accounts on the books 
of the American Pneumatic Service Co. and its subsidiary companies, without verify¬ 
ing same by a detailed audit. 

We are pleased to say that every facility was afforded us by the officers and employees 
of the American Pneumatic Service Co. to enable us to arrive at our conclusions. 

Respectfully submitted, 

The American Audit Co., 

[seal.] By James W. Hall, 

Resident manager. 

Approved: 

Theo. Cochen, Jr., Vice-president. 

Attest: 

H. F. Lafrentz, Assistant Secretary. 


PNEUMATIC-TUBE SYSTEM 


219 


Exhibit A. 

Summary of operation and profit and loss of subsidiary companies for five years ended 

Mar. 31, 1912. 


Rentals from United States 
Government: 

For year ended Mar. 31— 

1908 . 

1909 . 

1910 . 

1911 . 

1912 . 


Power, operating, repair shops 
and general expenses: 

For vear ended Mar. 31— 

1908 . 

1909 . 

1910 . 

1911 . 

1912 . 


Per Exhibit B. 


Gross operating profit: 

For year ended Mar. 31— 

1908 . 

1909 . 

1910 . 

1911 . 

1912 . 


Net income from small tube 
lines: 

For year ended Mar. 31— 

1908 . 

1909 . 

1910 . 

1911 . 

1912 . 


Miscellaneous charges against 
gross operating profit for 
bond premiums: 

For year ended Mar. 31— 

1908 . 

1909 . 

1910 . 

1911 . 

1912 . 


Insurance: 

For year ended Mar. 31— 

1908 . 

1909 . 

1910 . 

1911 . 

1912 . 


Interest (including $10,000 
bond interest per year): 
For year ended Mar. 31— 

1908 . 

1909 . 

1910 . 

1911 . 

1912 . 


Boston. 


$113,089.12 
113,089.11 
113,965.13 
115,158.00 
115,158.00 


570,459.36 


67,905. 86 
61,214.06 

55,909.99 
52,430. 30 
46,290.64 


283, 750. 85 


45,183. 26 
51,875.05 
58,055.14 
62,727. 70 
68,867. 36 


286,708.51 


1,696.96 
2,682.37 
2,436.00 
2,436.00 
2,441.50 


11,692.83 


565.45 
565.44 
565.44 
565.44 
565.44 


2,827.21 


366.51 
592.79 
542.27 
445.55 
595.32 


2,542.44 


25,919.94 

25,509.48 

23,306.71 

21,517.87 

20,266.07 


New York 
Mail and 
Newspaper 
Transpor¬ 
tation Co. 


116,520.07 


$29,936.77 
49,022.66 
50,475.72 
133,036.32 
141,006.06 


403,477.53 


New York 


$119,380.31 
246,732.06 
367,578.57 
397,004. 49 

449,927.99 


1,580,623.42 


101,919.16 
159,730.45 
193,990.03 
244,474.38 
234,565.00 


934,679.02 


17,461.15 
87,001.61 

173,588.54 
152,530.11 

215,362.99 


645,944. 40 


Chicago. 


$122,813.81 
125,970.00 
138,690. 25 
156,498.60 
161,286.39 


705,259.05 


73.631.12 

62.269.13 

64,956.54 
71,549.91 
75,164.35 


347,571.05 


49.182.69 
63,700.87 
73,733. 71 

84.948.69 
86,122.04 


357,688.00 


2,400.40 
2,400.36 
2,400.36 
2,400.36 
2,400.36 


12,001.84 


269.79 

342.31 

667.32 
497.28 

1,381.84 


3,158.54 


1,315.34 
67.07 
2,329.58 
2,839.84 
778.46 


5,639.23 


1,104.26 

1,472.28 

1,472.28 

1,472.28 

1,472.28 


6,993.38 


390.96 

497.87 

456.37 

405.67 

443.83 


2,194.70 


54,053.57 
50,594.67 

48,861.96 
48,500.65 
48,907.35 


250,918.20 


St. Louis. 


$32,953.21 
33,090.49 
33,090.49 
33,090.50 
33,090.50 


165,315.19 


24,120.34 
19,105.02 
18,544.95 
19,078.45 
16,529.53 


97,378.29 


8,832. 87 
13,985.47 

14,545.54 
14,012.05 

16,560.97 


67,936. 90 


205.58 
274.08 
274.08 
274.08 
274.08 


1,301.90 


84.53 
105.17 
100.27 
96.99 
119.54 


506.50 


18,802.98 
18,850.60 
18,786.46 
11,605.41 
12,049.56 


80,095.01 


Total. 


$388,236. 45 
518,881.66 
653,324. 44 
701,751.59 
759,462.88 


3,021,657.02 


267,576. 48 
302,318. 66 

333.401.51 
387,533.04 

372.549.52 


1,663,379. 21 


120,659.97 
216,563.00 
319,922.93 
314,218.55 
386,913.36 


1,358,277.81 


1,696.96 
2,682.37 
2,436.00 
2,436.00 
2,441.50 


11,692.83 


4,275.69 
4,712.16 
4,712.16 
4,712.16 
4,712.16 


23,124.33 


1,111.79 

1,538.14 

1,766.23 

1,445.49 

2,540.53 


8,402.18 


130,028.60 

143,910.34 

143,760.43 

217,500.09 

221,450.58 


856,650.04 




















































































































































































































220 


PNEUMATIC-TUBE SYSTEM. 


Exhibit A—Continued. 


Summary of operation and profit and loss of subsidiary companies for five years ended 

Mar. 31, 1912 —Continued. 



Boston. 

New York 
Mail and 
Newspaper 
Transpor¬ 
tation Co. 

New York. 

Chicago. 

St. Louis. 

Total. 

Taxes: 

For year ended Mar. 31— 
1908. 

$1,086. 84 
1,404 21 
984. 99 
1,816. 94 
2,524. 39 


$3,040.21 
3,158.58 
5,691.39 
8,435.03 
10,540. 48 

$4,566. 04 
6,340. 27 
6,453.32 
8,374.17 
8,384. 66 

$2, 726. 68 
2,473. 69 

2. 798.96 
2,669. 07 
2,706.11 

$11,419. 77 
13,376.75 
15,928.66 
21,295. 21 
24,155. 64 

1909. 


1910 


1911 

• 

1912 


Depreciation: 

For year ended Mar. 31— 
1908 . 


7,817.37 


30,865. 69 

34,118. 46 

13,374.51 

86,176.03 





38,370.00 
38,370.00 
38,370.00 
38,370. 00 
38,370. 00 


38,370.00 
38,370.00 
38,370.00 
38,370.00 
38,370.00 

1909.. 





1910. 





1911. 





1912. 











> 


191,850.00 


191,850.00 






SUMMARY FOR FIVE YEARS ENDED MAR. 31, 1912. 


Rental from United States 

Government. 

Power, operating, repair 
shops, and general expense. 

Gross operating profit.. 
Net income from small tube 
lines. 

$570,459.36 

283,750. 85 


$1,580,623.42 

934,679. 02 

$705,259. 05 

347,571.05 

$165,315.19 

97,378. 29 

$3,021,657.02 

1,663,379. 21 

226, 708. 51 

11,692.83 


645,944. 40 

357,638.00 

67,936.90 

1,358,277.81 

11,692.83 

Deduct: 

Bond premiums. 

Insurance. 

Interest (including $10,000 
bond interest per year). 

Taxes. 

Depreciation. 





298,401.34 


645,944. 40 

357,638.00 

67,936. 90 

1,369,970.64 

2,827.21 
2,542.44 

116,520.07 
7,817.37 

$403,477.53 

12,001.84 
3,158.54 

5,639. 23 
30,865. 69 

6,993.38 

2,194. 70 

250,918, 20 
34,118. 46 
191,850.00 

1,301.90 
506. 50 

80,095.01 
13,374. 51 

23,124.33 
8,402.18 

856,650.04 
86,176.03 
191,850.00 

Net profit, for 5 years 
ended Mar. 31, 1912... 





129,707.09 

403,477.53 

51,665.30 

486.074. 74 

95, 277. 92 

1,166,202. 58 

168,694.25 


190,801.57 

128,386. 74 

27,341.02 

203, 768.06 


Statement of cost of operating pneumatic-tube service for United States mail of subsidiary 

companies for the five years ended Mar. 31, 1912. 



Boston. 

New York. 

Chicago. 

St. Louis. 

Total. 

Power: 

Steam power purchased. 

Electric power purchased... 
Fuel. 

$38,203. 01 
58,334.12 
1,048.39 
107.90 
1,772.13 

10,048.15 

163. 63 
293.12 

1,310.65 

96.12 

$176,435.67 

219.445.08 

$52,271.27 

51,673.89 

$18,175.65 

$285,085.60 
329,453.09 
1,048.39 
4,977.75 
8,114.92 

68,826.47 

1,045.67 

1,748.53 

6,600.21 

969. 43 
229.64 

Rent, light, and heat. 

Oil and waste... 

Engine and boiler room 

labor. 

Engine and boiler room sup¬ 
plies . 

Signal wires. 

Repairs— 

Power plant and piping. 
Compressors and blow¬ 
ers. 

Buildings. 

4,824. 64 
4,666.53 

36,479.09 

317.69 
1,272.76 

2,674.62 

571.53 

45.21 

1,178.88 

13,055.87 

445.98 
182.65 

2,224. 73 

287.89 
229.64 

497.38 

9,243.36 

118.37 

390.21 

13.89 

Total. 



111,377. 22 

446,6S7.61 

121,596.01 

28,438.86 

708,099. 70 












































































































































































PNEUMATIC-TUBE SYSTEM 


221 


Exhibit A—Continued. 

Statement of cost of operating pneumatic-tube service for United States mail of subsidiary 

companies for the Jive years ended Mar. 31, 1912. 


Operating: 

Labor. 

Supplies. 

Oil and waste. 

Rent, light, and heat. 

Inspection. 

Automobile expense. 

Mail teams. 

Traveling and miscellane¬ 
ous . 

Fines. 

Repairs— 

Tubes. 

Terminal machinery 

Carriers. 

Buildings and fixtures.. 
Extraordinary. 


Total. 


Repair shop: 

Materials. 

Indirect labor. 

Expense— 

Supplies. 

Tools used. 

Telephone and telegraph.. 
Rent, light, heat, and power. 
Repairs— 

Machinery and tools.. 
Buildings and fixtures 

Teaming. 

Experimental work. 

Miscellaneous. 

Freight and express. 


Boston. 


$79,165.17 
765.83 
1,825.57 
446.45 

14.821.38 
219.32 
778.91 

3,961.60 
59.64 

1,315.66 

2,033.87 

27.557.39 
120. 40 

9,168.91 


142,240.10 


Total. 


General expense: 

Salaries... 

Postage and stationery... 

Traveling. 

Telephone and telegraph. 
Rent, light, and heat.... 

Fines. 

Legal. 

Patent expense. 

Miscellaneous. 

Directors’ fees. 

Bonus on operating. 


Total. 

Grand total. 


24,716.44 
138.12 
57.61 

2,499.83 
1,500.00 
8.00 


825.50 
75.00 
313.03 


30,133.53 


283,750.85 


New York. 


$241,324.34 
707.26 
2,196.45 
46.20 
18,302. 27 


3,021.65 

5,277.54 
710.61 

11,039.92 
7,088.07 
61,165.84 
120.65 
47,172.02 


398,172. 82 


92.74 

23.92 
349.25 
9.30 
1,309.30 

26.13 

9.17 

22.50 

2.40 

16.44 

.29 


1,861.44 


47,202.53 
601.17 
3,891.62 
13,043.02 
1,409.92 
280.00 
17,385.55 
39.00 
2,906.85 
330.00 
867.49 


Chicago. 


St. Louis. 


$94,085.29 : 
706.84 
1,732.31 | 
341.29 
21,677.78 


$19,893.58 
309.63 
454. 78 
1,800.00 
9,040.19 


3,124.58 

2,941.45 

5,717.22 

2,170.18 
6,249.96 
30,804. 70 
450.82 
8,176.41 


666. 75 

1,403. 42 
113.57 

786. 26 
302. 69 
6,440.42 
3.93 
6,650. 49 


178,178. 83 


47,865.71 


. 25 
1,098.52 

16.75 
160.72 


881.00 

9.02 

8.63 

44.72 


4.74 

34.54 


2,258.89 


87,957.15 


934,679.02 


29,559.09 
648.57 
3,953.76 
3,191.72 
1,510.00 

216.83 
3,851.25 


2,256.42 
75.00 
274.68 


119.57 

12.22 

58.81 


.63 


25.61 

26.00 


11.07 


253.91 


12,508.28 
202.79 
968.73 
889.66 
1,500.00 
2.00 
3,000.00 


1,643.53 

20.00 

84.82 


45,537.32 

20,819.81 

347,571.05 

97,378.29 


Total. 


$434,468.38 
2. 489.56 
6,209.11 
2,633.94 
63,841.62 
219.32 
7,591.89 

13,584.01 

6,601.04 

15,312.02 
15,674.59 
125,968.35 
695.80 
71,167.83 


766,457. 4 6 


.25 

1,310.83 

52.89 
568.78 

9.30 

2,190.30 

35.78 

17.80 

92.83 

28.40 

21.18 

45.90 


4,374.24 


113,986.34 
1,590.65 
8,871.72 
19,624.23 
5,919.92 

506.83 
24,236.80 
39.00 
7,632.30 
500.00 
1,540.02 


184,447.81 


1,663.379.21 


Exhibit C. 

American Pneumatic Service Co., Boston, Mass.—Combined statement of profit and loss 
of subsidiary companies for the five years ended Mar. 31, 1912. 


Debits. 


Other expenses for the year ended Mar. 


31,1908: 

Bond premiums. $4,275.69 

Insurance. 1, 111. 79 

Interest. 130,028.60 

Taxes. 11,419.77 


146,835.85 

Other expenses for the year ended Mar. 


31, 1909: 

Bond premiums. 4,712.16 

Insurance. 1,538.14 

Interest. 143,910.34 

Taxes. 13,376.75 


163,537.39 


Credits. 


Rentals from United States Govern¬ 
ment for the year ended Mar. 31, 

1908 (see Exhibit A). $388,236.45 

Less cost of power, operating, repair 
shop, and general expense, Schedule 
No. 5. 267,576.48 


Gross operating profit for the 
year ended Mar. 31, 1908_ 120,659.97 


Rentals from United States Govern¬ 
ment for the year ended Mar. 31, 

1909 (See Exhibit A). 518,881.66 

Less cost of power, operating, repair 
shop, and general expense, Sched¬ 
ule No. 6. 302,318.66 


Gross operating profit for the 
year ended Mar. 31,1909. 216,563.00 






























































































































222 


PNEUMATIC-TUBE SYSTEM 


Exhibit C—Continued. 

American Pneumatic Service Co., Boston , Mass., etc. —Continued. 


Debits. 


Other expenses for the year ended Mar. 


31, 1910: 

Bond premiums. $4,712.16 

Insurance.. 1,766.23 

Interest. 143,760.43 

Taxes. 15,928.66 


166,167.48 

Other expenses for the year ended Mar. 


31, 1911: 

Bond premiums. 4,712.16 

Insurance. 1,445.49 

Interest. 217,500.09 

Taxes. 21,295.21 


244,952.95 

Other expenses for the year ended Mar. 


31, 1912: 

Bond premiums. 4,712.16 

Insurance. 2,540.53 

Interest. 221,450.58 

Taxes. 24,155.64 


252,858.91 

Rentals of leased lines, New York 
Pneumatic Service Co.: 

For the year ended Mar. 31— 


1908 . 10,000.00 

1909 . 54,721.05 

1910 . 118,079.03 

1911 .:. 115,310.55 

1912 . 170,714.47 


468,825.10 


Depreciation, Chicago Pneumatic 
Tube Co.: 

For the year ended Mar. 31— 


1908 . 38,370.00 

1909 . 38,370.00 

1910 . 38,370.00 

1911 . 38,370.00 

1912 . 38,370.00 


191,850. 00 


1,635,027.68 

Balance, operating profit for the 5 years 
ended Mar. 31, 1912 . 203,768.06 


1 , 838 , 795.74 


Credits. 


Rentals from United States Govern¬ 


ment for the year ended Mar. 31, 

1910 (see Exhibit A). $653,324.44 

ess cost of power, operating, repair 
shop, and general expense, Sched¬ 
ule No. 7. 333,401.51 


Gross operating profit for the 
year ended Mar. 31,1910. 319,922.93 


Rentals from United States Govern¬ 
ment for the vear ended Mar. 31, 

1911 (see Exhibit A). 701,751.59 

Less cost of power, operating, repair 
shop, and general expense, Sched¬ 
ule No. 8. 387,533.04 


Gross operating profit for the 
year ended Mar. 31, 1911. 314,218.55 


Rentals from United States Govern¬ 
ment for the year ended Mar. 31, 

1912 (see Exhibit A). 759,462.88 

Less cost of power, operating, repair 
shop, and general expense, Sched¬ 
ule No. 9. 372.549.52 


Gross operating profit for the 
year ended Mar. 31, 1912_ 386,913.36 


Other sources of income: 

Small tube lines, Mar. 

31,1908. 3,291.00 

Less cost of mainte¬ 
nance . 1,594.04 

-- 1,696.96 

Small tube lines. Mar. 

31, 1909. 3,000.68 

Less cost of mainte¬ 
nance. 318.31 

- 2,682.37 

Small tube lines, Mar. 

31, 1910. 2,736.00 

Less cost of mainte¬ 
nance . 300.00 

- 2,436.00 

Small tube lines, Mar. 

31.1911 . 2,736.00 

Less cost of mainte¬ 
nance . 300.00 

- 2,436.00 ' 

Small tube lines, Mar. 

31.1912 . 2,742.00 

Less cost of mainte¬ 
nance . 300.50 

- 2,441.50 


Total profit operating small 
tube lines for the 5 years 
ended Mar. 31, 1912. 11,692.83 

Lease rentals received, New York 
Mail & Newspaper Transportation 
Co.: 

For vear ended Mar. 31— 

1908 . 

1909 . 

1910 .. 

1911 .;. 

1912 . 


468,825.10 


10,000.00 
54,721.05 
118,079.03 
115,310.55 
170,714. 47 


1 , 838 , 795 . 74 

































































































PNEUMATIC-TUBE SYSTEM. 


223 


Exhibit D. 

Boston Pneumatic Transit Co., Boston, Mass.—Profit and loss account for the 5 years 
* ended Mar. 31, 1908, 1909, 1910, 1911, and 1912. 


Debits. 

Credits. 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 

1908: 

Bond premiums. $565.45 

Insurance. 366.51 

Interest. 25,919.94 

Taxes. 1,086.84 

Rental from United States Government 

for the year ended Mar. 31,1908.$113,089.12 

Less cost of power, operating and gen¬ 
eral expense, Schedule No. 1 . 67,905.86 

27,938. 74 

Gross operating profit for the year 
ended Mar. 31, 1908. 45.183.26 

Miscellaneous charges against gross oper¬ 
ating profit for they ear ended Mar. 31, 

1909: 

Bond premiums. 565.44 

Insurance. 592.79 

Interest. 25,509.48 

Taxes. 1,404.21 

Rental from United States Government 

for the year ended Mar. 31,19C9. 113,089.11 

Less cost'of power, operating and gen¬ 
eral expense, Schedule No. 1. 61,214.06 

28,071.92 

Gross operating profit for the year 
ended Mar. 31,1909. 51,875.05 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 

1910: 

Bond premiums. 565.44 

Insurance. 542.27 

Interest. 23,306.71 

Taxes. 984.99 

Rental from United States Government 

for the year ended Mar. 31,1910. 113,965.13 

Less cost of power, operating and gen¬ 
eral expense, Schedule No. 1. 55,909.99 

25,399.41 

Gross operating profit for the year 
ended Mar. 31, 1910. 58,055.14 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 

1911: 

Bond premiums. 565.44 

Insurance. 445.55 

Interest. 21,517.87 

Taxes. 1,816.94 

Rental from United States Government 

for the year ended Mar. 31,1911. 115,158.00 

Less cost of power, operating and gen¬ 
eral expense, Schedule No. 1. 52,430.30 

24,345.80 

Gross operating profit for the year 
ended Mar. 31, 1911. 62,727.70 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 

1912: 

Bond premiums. 565.44 

Insurance. 595.32 

Interest. 20,266.07 

Taxes. 2,524.39 

Rental from United States Government 

for the year ended Mar. 31, 1912. 115,158.00 

Less cost of power, operating and gen¬ 
eral expense, Schedule No. 1. 46,290.64 

23,951.22 

Gross operating profit for the year 
ended Mar. 31, 1912. 68,867.36 

Balance, net operating profit, for the 5 
years ended Mar. 31, 1912. 168,694.25 

Other sources of income: 

Small tube lines, Mar. 31, 

1908 .$3,291.00 

Less cost of maintenance. 1,594.04 

- 1,696.96 

Small tube lines, Mar. 31, 

1909 . 3,000.68 

Less cost of maintenance. 318.31 

2,682.37 

Small tube lines, Mar. 31, 

1910 . 2,736.00 

Less cost of maintenance. 300.00 

2,436.00 

Small tube lines, Mar. 31, 

1911 . 2,736.00 

Less cost of maintenance. 300.00 

2,436.00 

Small tube lines, Mar. 31, 

1912 . 2.742.00 

Less cost of maintenance. 300.50 

2,441.50 

Total profit operating small tule 
lines for the 5 vears ended Mar. 

31,1912. 11,692.83 

298,401.34 

298,401.34 
































































































224 


PNEUMATIC-TUBE SYSTEM 


Exhibit E. 

\ 

New York Pneumatic Service Co., New York, N. Y.—Profit and loss account for the 
five years ended Mar. 31, 1908, 1909, 1910, 1911, and 1912. 


Debits. 

Credits. 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 

1908: 

Bond premiums. $2,400.40 

Insurance. 269.79 

Interest. 1,315.34 

Taxes. 3,040.21 

Rental from United States Government 

for the year ended Mar. 31,1908..$119,380.31 

Less cost of power, operating, repair 
shop, and general expense, Schedule 

No. 2. 101,919.16 

7,025.74 

Gross operating profit for the 
year ended Mar. 31, 1908. 17,461.15 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 

1909: 

Bond premiums. 2,400.36 

Insurance. 342.31 

Interest. 67.07 

Taxes. 3,158.58 

Rental from United States Govern¬ 
ment for the year ended Mar. 31,1909. 246, 732.06 
Less cost of power, operating, repair 
shop, and general expense, Schedule 

No. 2.. 159,730.45 

5,834.18 

Gross operating profit for the year 
ended Mar. 31, 1909. 87,001. 61 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 

1910: 

Bond premiums. 2,400.36 

Insurance. 667.32 

Interest. 2,329.58 

Taxes. 5,691.39 

Rental from United States Govern¬ 
ment for the year ended Mar. 31,1910. 367,578.57 
Less cost of power, operating, repair 
shop, and general expense, Schedule 

No. 2. 193,990.03 

11,088.65 

Gross operating profit for the year 
ended Mar. 31,1910. 173,588. 54 

Miscellaneous charges against gross-oper¬ 
ating profit for the year ended Mar. 31, 

1911: 

Bond premiums. 2,400.36 

Insurance. 497.28 

Interest. 2,839.84 

Taxes. 8,435.03 

Rental from United States Govern¬ 
ment for the year ended Mar. 31,1911. 397,004.49 
Less cost of power, operating, repair 
shop, and general expense, Schedule 

No. 2. 244,474.38 

14,172.51 

Gross operating profit for the year 
ended Mar. 31,1911.. 152,530.11 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 

1912: 

Bond premiums. 2,400.36 

Insurance. 1,381.84 

Interest. 778.46 

Taxes. 10,540.48 

Rental from United States Govern¬ 
ment for the year ended Mar. 31,1912. 449,927.99 
Less cost of power, operating, repair 
shop, and general expense, Schedule 

No. 2. 234,565.00 

13,544.22 

Gross operating profit for the year 
ended Mar. 31, 1912. 215,362.99 

Rentals of leased lines: 

For the year ended Mar. 31— 

1908 . 10,000.00 

1909 . 54,721.05 

1910 . 118,079.03 

1911 .115,310.55 

1912 . 170,714.47 

468,825.10 

520.490.40 

Balance, net operating profit for the 5 
years ended Mar. 31,1912. 125,454.00 

645.944.40 

645,944.40 
























































































PNEUMATIC-TUBE SYSTEM 


225 


Exhibit F. 

New York Mail & Newspaper Transportation Co., New York, N. Y.—Profit and 
loss account for five years ended March 31, 1908, .1909, 1910, 1911, and 1912. 


Debits. 


Expenses for the year ended Mar. 31, 

1908: 

Bond interest."... $10,000.00 

Interest. 19,936. 77 

29,936.77 

Expenses for the year ended Mar. 31, 

1909: 

Bond interest. 10,000.00 

Interest. 39,022.66 

49,022. 66 

Expenses for the year ended Mar. 31, 

1910: 

Bond interest. 10,000.00 

Interest. 40,475. 72 

50,475. 72 

Expenses for the year ended Mar. 31, 

1911: 

Bond interest. 10,000.00 

Interest. 123,036.32 

133,036.32 

Expenses for the year ended Mar. 31, 

1912: 

Bond interest. 10,000.00 

Interest. 131,006.06 

141,006.06 

403,477.53 

Balance, net profit for the 5 years ended 
Mar. 31,1912. 65,347.57 

468,825.10 


Credits. 


Lease rental received for the year ended 

Mar. 31, 1908.$10,000.00 

Lease rentals received for the year ended 

Mar. 31, 1909 . 54,721.05 

Lease rentals received for the year ended 

Mar. 31, 1910. 118,079.03 

Lease rentals received for the year ended 

Mar. 31,1911. 115,310.55 

Lease rentals received for the year ended 
Mar. 31,1912. 170,714.47 


r- 


468,825.10 


Exhibit G. 

Chicago Pneumatic Tube Co., Chicago, 111.—Profit and loss account for the five years 

ended Mar. 31, 1908, 1909, 1910, 1911, and 1912. 


Debits. 

Credits. 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 

31, 1908: 

Bond premiums. $1,104.26 

Insurance. 390.96 

Interest. 54,053.57 

Taxes. 4,566.04 

Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1908.$122,813.81 

Less: 

Cost of power, operating, repair 
shop, and general expense, sched¬ 
ule No. 3. 73,631.12 

60,114.83 

Gross operating profit for the 
year ended Mar. 31, 1908. 49,182.69 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 

31 1909: 

Bond premiums. 1,472.28 

Insurance. 497.87 

Interest. 50,594.67 

Taxes. 6,340.27 

Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1909. 125,970.00 

Less: 

Cost of power, operating, repair 
shop, and general expense, sched¬ 
ule No. 3. 62,269.13 

58,905.09 

Gross operating profit for the 
year ended Mar. 31,1909. 63,700.87 


78419—13-15 















































































226 


PNEUMATIC-TUBE SYSTEM 


Exhibit G—Continued. 

Chicago Pneumatic Tube Co., Chicago , III.—Profit and loss account for the five years 
ended Mar. 31, 1908,.1909, 1910, 1911, and 1912 —Continued. 


Debits. 

Credits. 

Miscellaneous charges against gross op¬ 
erating profit for the year ended Mar. 

31, 1910: 

Bond premiums. $1,472.28 

Insurance. 456.37 

Interest. 48,861.96 

Taxes. 6,453.32 

Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1910.$138,690.25 

Less: 

Cost of power, operating, repair 
shop, and general expense, sched¬ 
ule No. 3. 64,956.54 

57,243.93 

Gross operating profit for the 
year ended Mar. 31,1910. 73,733.71 

Miscellaneous charges against gross op¬ 
erating profit for the year ended Mar. 

31,1911: 

Bond premiums. 1,472.28 

Insurance. 405.67 

Interest... 48,500.65 

Taxes. 8,374.17 

Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1911. 156,498.60 

Less: 

Cost of power, operating, repair 
shop, and general expense, sched¬ 
ule No. 3. 71,549.91 

58,752.77 

Gross operating profit for the 
year ended Mar. 31, 1911. 84,948.69 

Miscellaneous charges against gross op¬ 
erating profit for the year ended Mar. 

31,1912: 

Bond premiums. 1,472.28 

Insurance. 443.83 

Interest. 48,907.35 

Taxes. 8,384.66 

Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1912.7. 161,286.39 

Less: 

Cost of power, operating, repair 
shop, and general expense, sched¬ 
ule No. 3. 75,164.35 

59,208.12 

Gross operating profit for the 
year ended Mar. 31,1912. 86,122.04 

Depreciation: 

For the year ended Mar. 31— 

1908 . 38,370.00 

1909 . 38,370.00 

1910 . 38,370.00 

1911 . 38,370.00 

1912 . 38,370.00 

Balance, net operating loss, for the 5 
years ended Mar. 31,1912. 128,386.74 

191,850.00 


486 , 074 . 74 


486 , 074 . 74 




























































PNEUMATIC-TUBE SYSTEM 


227 


Exhibit H. 

St. Louis Pneumatic Tube Co., St. Louis, Mo.—Profit and loss account for the five yean 

ended Mar. 81, 1908, 1909, 1910, 1911, and 1912. 


Debits. 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 
1908: 

Bond premiums. 

Insurance. 

Interest. 

Taxes. 

$205.58 
84.53 
18,802.98 
2,726. 68 


21,819.77 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 
1909: 

Bond premiums. 

Insurance. 

Interest. 

Taxes. 

274.08 
105.17 
18,850.60 
2,473.69 


Ol r A9 nA 


21,703.54 


Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 


1910: 

Bond premiums. 274.08 

Insurance. 100.27 

Interest.• 18,786.46 

Taxes. 2,798.96 


21,959.77 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 


1911: 

Bond premiums. 274.08 

Insurance. 96.99 

Interest. 11,605.41 

Taxes. 2,669.07 


14,645.55 

Miscellaneous charges against gross oper¬ 
ating profit for the year ended Mar. 31, 


1912: 

Bond premiums. 274.08 

Insurance. 119- 54 

Interest. 12,049.56 

Taxes. 2,706.11 


15,149.29 


95 , 277.92 


Credits. 


Rental from United States govern¬ 
ment for the year ended Mar. 31, 

1908. $32,953.21 

Less cost of power, operating, repair 
shop and general expense, schedule 
No. 4. 24,120.34 


Gross operating profit for the year 
ended Mar. 31, 1908 . 8,832.87 


Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1909. 33,090.49 

Less cost of power, operating, repair 
shop and general expense, schedule 
No. 4. 19,105.02 


Gross operating profit for the year 
ended Mar. 31, 1909. 13,985.47 


Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1910. 33,090.49 

Less cost of power, operating, repair 
shop and general expense, schedule 
No. 4. 18,544.95 


Gross operating profit for the year 
ended Mar. 31, 1910. 14,545.54 


Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1911. 33,090.50 

Less cost of power, operating, repair 
shop and general expense, schedule 
No. 4. 19,078.45 


Gross operating profit for the year 
ended Mar. 31, 1911. 14,012.05 


Rental from United States Govern¬ 
ment for the year ended Mar. 31, 

1912. 33,090.50 

Less cost of power, operating, repair 
shop and general expense, schedule 
No. 4. 16,529.53 


Gross operating profit for the 5 years 
ended Mar. 31, 1912. 16,560.97 


Balance, net operating loss, for the 5 
years ended Mar. 31, 1912. 27,341.02 


95 , 277.92 


















































































228 


PNEUMATIC-TUBE SYSTEM 


Exhibit H — Continued. 

Schedule 1. 

Boston Pneumatic Transit Co., Boston, Mass.—Statement of cost of operating pneumatic- 
tube service for United States mail for the Jive years ended Mar. 31, 1908, 1909, 1910 , 
1911, and 1912. 



1908 

1909 

1910 

1911 1912 

Total. 

Power: 

Electricity purchased. 

Fuel. 

$14,422.35 
1,067.90 
8,400.00 
98.80 
249.52 
2,130.81 

54.65 

$14,284.97 
19.51 
8,400.00 
5.50 
442.39 
2,064.77 

43.90 

$10,931.70 

$9,662.74 

$9,032.36 

$58,334.12 
1,048.39 
38,203.01 
107.90 
1,772.13 
10,048.15 

163.63 

293.12 

1,310.65 

96.12 

Steam purchased. 

Rent, light, and heat. 

Oil and waste. 

Engine room, labor. 

Engine and boiler rooms, sup¬ 
plies . 

Signal wires. 

8,400.00 
3.60 
345.46 
1,905.84 

23.18 

7,283.30 

432.75 
1,955.97 

19.88 
138.96 

407.13 

5,719.71 

302.01 

1,990.76 

22.02 
154.16 

51.27 

Repairs— 

Power plant and piping.... 
Compressors and blowers... 

Total power. 

Operating: 

Labor. 

Supplies. 

Oil and waste. 

Rent, light, and heat. 

Inspection. 

Automobile expense. 

165.27 

73.03 

76.25 

23.09 

610.73 

26,662.33 

25,321.36 

22,220.51 

19,900.73 

17,272.29 

111,377.22 

16,471.08 
202.57 
956.61 
277.98 
3,455.39 

16,235.69 
219.63 
217.16 
183.46 
3,169.75 

15,988.03 

122.47 

193.16 

30.20 

2,696.61 

15,597.71 

112.17 

179.63 

2,659.09 

14,872.66 
108.99 
233.82 

2,840.54 
219.32 
124.92 
170.65 

79,165.17 
765.83 
1,825.57 
446.45 

14.821.38 
219.32 
778.91 

3,961.60 
59.64 

1,315.66 
2,033.87 

27.557.39 
120.40 

9,168.91 

Mail teams_*. 

Traveling and miscellaneous... 
Fines. 

284.85 
2,925.91 
46.64 

361.49 
731.40 
8,624.69 
35.54 

1,000.00 

117.07 

393.67 

12.00 

72.74 
185.38 
5,960.02 

2,400.00 

138.10 

261.96 

1.00 

58.91 
408.26 
4,803.00 
77.18 
2,400.00 

113.97 
209.41 

Repairs— 

Tubes. 

Terminal machinery. 

Carriers. 

Buildings and fixtures. 

Extraordinary. 

Total operating. 

General: 

Salaries. 

Postage and stationery. 

Traveling. 

Telegraph and telephone. 

Rent, light, and heat. 

Miscellaneous. 

Fines. 

275.86 
460.82 
3,408.28 
3.75 
2,632.06 

546.66 
248.01 

4,761.40 
3.93 
736.85 

35,374.15 

29,166.57 

27,178.88 

25,652.75 

24,867.75 

142,240.10 

4,858.72 
20.00 
15.81 
443.00 
300.00 
231.85 

5,443.93 

12.43 

10.80 

551.97 

300.00 

407.00 

5,688.53 
44.12 
18.40 
439.10 
300.00 
20.45 

5,798.68 
58.12 
12.60 
531.38 
300.00 
126.04 
6.00 
44.00 

2,926.58 
3.45 

534.38 
300.00 
40.16 
2.00 
269.03 
75.00 

24,716.44 

138.12 

57.61 

2,499.83 

1,500.00 

825.50 

8.00 

313.03 

75.00 

Bonus on operating. 




Directors' fees. 




Total general. 

Grand total (power, op¬ 
erating, and general ex¬ 
pense) . 





5,869.38 

6,726.13 

6,510.60 

6,876.82 

4,150.60 

30,133.53 

67,905.86 

61,214.06 

55,909.99 

52,430.30 

46,290.64 

283,750.85 


















































































































PNEUMATIC-TUBE SYSTEM 


229 


Exhibit H — Continued. 

Schedule 2. 

New York Pneumatic Service Co., New York, N. Y—Statement of cost of operating 
pneumatic tube service for United States mail for the five years ended Mar. 31, 1908 
1909, 1910, 1911, and 1912. 



190S 

1909 

1910 

1911 

1912 

Total. 

Power: 

Steam power purchased 

$44,679. 94 

$36,853.34 
31,896.99 

$31,701.26 
57,671.68 
1,163.63 
602.50 
7,465.27 

58.31 

$35,337.23 
61,527.11 
1,177.36 
582.14 
7,118.65 

81.67 

563.26 

$27,863.90 
68,349.30 
1,480.30 
600.00 
7,367.45 

81.92 
709.50 

1,520.99 

$176,435.67 
219,445.08 
4,666.53 
4,824.64 
36,479.09 

317.69 
1,272.76 

2,674. 62 
571.53 

Electric power purchased. 


Oil and waste... 

271.89 

' 573.35 

Rent, light, and heat. 

1,560.00 

1,480.00 

Engine room, labor. 

7,430.52 

7,097. 20 

16.17 

Engine and boiler room, sup¬ 
plies . 

79. 62 

Signal wires. 

Repairs— 

Power plant and piping 
Compressors and blowers... 

52.85 
170. 89 

69.40 
400.12 

369. 71 

661.67 
.52 



Total power. 

54,245. 71 

78,386.57 

99,032.36 

107,049. 61 

107,973.36 

446,687.61 




Operating: 

Labor. 

22,651.92 

40,993.23 
74.30 

54,419.34 

57,915.45 
181.20 

65,344.40 
81. 84 

241,324.34 

Supplies. 

213.10 

156.82 

707.26 

Oil and waste. 

356. 89 

438.08 

552.83 

471.89 

376. 76 

2,196. 45 

Rent, light, and heat. 

16. 70 

22.30 

7.20 

46.20 

Inspection. 

2,658:20 

2,867. 61 

3,725.98 

4,214.29 

4,836.19 
124.00 

18,302.27 
3,021.65 
5,277.54 
710.61 

Mail teams. 

' 867. 20 

1 , 787.85 

91.35 

'151.25 

Traveling and miscellaneous... 
Fines. 

566.47 
516. 45 

1,041.37 
134.16 

1,179.31 

60.00 

1,213.63 

1,276. 76 

Repairs— 

Tubes. 

2,313.12 

5, 788. 66 

388.01 

991.56 

1,558.57 

11,039.92 

Terminal machinery. 

'575.54 

‘ 345.42 

1,338.34 

1,662.80 

3', 165.97 
23,121.90 

7', 088.07 
61,165.84 

Carriers. 

5,578.74 

13.32 

7,962.87 

5.10 

12,447.33 

12,055.00 

66.43 

Buildings and fixtures. 

5.36 

30.44 

' 120.65 

Extraordinary. 

143.41 

1,750.00 

2,100.00 

40,179.45 

2,999.16 

47,172.02 



Total operating. 

36,454.36 

63,188. 65 

76,481.37 

119,125. 25 

102,923.19 

398,172. 82 





Repair shop: 

Indirect labor. 


1.47 

91.27 



92.74 

Expense- 

Supplies . 



23.92 

23.92 

Tools used. 

119.52 

11.46 

24.31 

63.30 

130.66 

349.25 

Telephone and telegraph. 

4.35 

4.95 

9.30 

Rent, light, heat, and power.... 
Repairs— 

Ma.nhinerv and tools... 

381.40 

927.90 




1,309.30 

18.13 

8.00 



26.13 

Buildings and fixtures. 



9.17 

9.17 

Teaming . 




2.75 

19.75 

22.50 

Experimental work.. 



2.40 

2.40 

Miscellaneous. 

16. 44 




16. 44 

Freight, and express . 




.29 

.29 






Total repair shop. 

523.40 

962.22 

125.98 

66.05 

183.79 

1,861.44 



General expense: 

Salaries. 

7,505.35 
186.01 

7,376.13 
84.60 

9,147.11 
51.20 

9,579.94 

13,594.00 

142.39 

47,202.53 

601.17 

Postage and stationery. 

136.97 

Traveling. 

374.97 

1,309.18 

2,023.64 

527.20 

934. 77 

745.50 

3,891.62 

13,043.02 

1,409.92 

Telephone and telegraph. 

1,279.52 

2,778.01 

3,221.65 
418.00 

3,740.20 
329.10 

Rent, light, and heat. 

' 52.42 

' 300.00 

'310.40 

Fines. . . 


100.00 

180. 00 

' 280.00 

Leeal. 

537. 73 

5,408.80 

5,338.78 

2,929.99 

3,170.25 

17,385.55 

Patent exnense 

39.00 



39.00 

Miscellaneous. 

625.69 

690.66 

177.62 

747.15 

665.73 

2,906.85 

Directors’ fees 

95.00 


20.00 

50.00 

165.00 

330.00 

Bonus on oneratinv 



115.00 

752.49 

867.49 








Total general expense.... 

10,695.69 

17,193.01 

18,350.32 

18,233.47 

23,484.66 

87,957.15 

Grand total—power, oper¬ 
ating, repair shop, and 
general expense. 

101,919.16 

159,730.45 

193,990.03 

244,474.38 

234,565.00 

934,679.02 




















































































































































230 


PNEUMATIC-TUBE SYSTEM 


Exhibit H — Continued. 
Schedule 3. 


Chicago Pneumatic Tube Co., Chicago, III.—Statement of cost of operating pneumatic 
tube service for United States mail for the five years ended Mar. 31, 1908, 1909, 1910, 
1911, and 1912. 



1908 

1909 

1910 

1911 

1912 

Total. 

Power: 







Steam power purchased. 

$9,522.62 

$10,000.00 

$13,333.33 

$11,262.42 

$8,152.90 

$52,271.27 

Electric power purchased. 

12,691.17 

10,601.64 

8,905.32 

8,691.16 

10,784.60 

51,673.89 

Rent, light, and heat. 

1.96 

12.18 

8.53 

11.10 

11.44 

45.21 

Oil and waste. 

211.09 

230.16 

179.09 

313.96 

244.58 

1,178.88 

Engine room, labor. 

3,048.17 

3,180.12 

2,020.18 

2,232. 48 

2,574.92 

13,055.87 

Engine and boiler room, sup- 







plies. 

112.96 

109. 87 

99.16 

50.06 

73.93 

445.98 

Signal wires . 




90.95 

91.70 

182.65 

Repairs— 







Power plant and piping.... 

349.03 

315.46 

116.23 

435.43 

1,008.58 

2,224.73 

Compressors and blowers... 

264.54 

23.35 




287.89 

Buildings. 


. 75 

95.79 

89.77 

43.33 

229.64 

Total power. 

26,201.54 

24,473.53 

24,757.63 

23,177.33 

22,985.98 

121,596.01 

Operating: 







Labor. 

17,249.23 

16,021.57 

18,811.53 

20,429.90 

21,573.06 

94,085.29 

Supplies. 

222.03 

69.01 

79.20 

197.70 

138.90 

706.84 

Oil and waste. 

465.52 

181.22 

319.42 

337.44 

428. 71 

1,732.31 

Rent, light, and heat. 

80.86 

30.10 

77.15 

35.94 

117.24 

341.29 

Inspection. 

5,533.97 

4,749.89 

3,702.82 

3,485.91 

4,205.19 

21,677. 78 

Mail teams. 

1,099.50 

188.33 

468.75 

450.00 

918.00 

3,124.58 

Traveling and miscellaneous... 

679.48 

833.06 

637.71 

335.48 

455.72 

2,941.45 

Eines . 

5,514.39 

158. 43 

44.40 



5,717.22 

Repairs— 






Tubes. 

1,478.32 

213.31 

347.23 

301.83 

170.51 

2,170.18 

Terminal machinery. 

458.25 

208.53 

1,237.67 

1,207.32 

3,138.19 

6,249.96 

Carriers. 

4,016.17 

5,884.03 

5,399.42 

6,487.74 

9,017.34 

30,804. 70 

Buildings and fixtures. 

170.29 

23.76 

122.67 

31.77 

102.33 

450.82 

Extraordinary. 




3,019.57 

5,156.84 

8,176.41 

Total operating. 

36,968.01 

28,561.24 

31,247.97 

36,320.60 

45,081.01 

178,178.83 

Repair shop: 







M aterials, etc. 



.25 



.25 

Indirect labor. 

147.41 

360.88 

279.96 

294.87 

15.40 

1,098.52 

Expense— 







Supplies used. 

10.99 


.52 


5.24 

16.75 

Tools used . 

43.37 

1.60 



115.75 

160.72 

Rent, light, heat, and power... 

270.00 

150.00 

150.00 

262.50 

48.50 

881.00 

Repairs— 







Buildings and fixtures. 



9.02 



9.02 

Machinery and tools. 

7.24 

1.39 




8.63 

Teaming .. 

1.00 


13.72 


30.00 

44.72 

Freight and express. 

24.45 

3.80 

5.54 

.75 


34.54 

Miscellaneous expense. 

.95 



3.79 


4.74 








Total repair shop. 

505.41 

517.67 

459.01 

561.91 

214.89 

2,258.89 

General expense: 







Salaries. 

6,163.81 

5,977.82 

6,280.55 

6,628.70 

4,508.21 

29,559.09 

Post printing and stationery 







supplies. 

147.37 

118.31 

130.78 

142.62 

109.49 

648.57 

Traveling. 

990.53 

1,121.46 

826.59 

522.18 

493.00 

3,953.76 

Telephone and telegraph. 

611.07 

615.33 

596.09 

660.02 

709.21 

3,191.72 

Rent, light, and heat. 

300.00 

300.00 

300.00 

300.00 

310.00 

1,510.00 

Legal. 

1,245.00 



2,531.25 

75.00 

3.851.25 

Fines. 




' 165.83 

51.00 

216.83 

Directors’ fees. 



20.00 

20.00 

35.00 

75.00 

Miscellaneous. 

498.38 

583.77 

337.92 

479.47 

356.88 

2,256.42 

Bonus on operating. 




40.00 

234.68 

274.68 

Total general expense.... 

9,956.16 

8,716.69 

8,491.93 

11,490.07 

6,882.47 

45,537.32 

Grand total (power, oper- 







ating, repair shop, and 







general expense). 

73,631.12 

62,269.13 

64,956.54 

71,549.91 

75,164.35 

347,571.05 

















































































































































PNEUMATIC-TUBE SYSTEM 


231 


Exhibit H — Continued. 

Schedule 4. 

St. Louis Pneumatic Tube Co., St. Louis, Mo.—Statement of cost of operating pneumatic- 
tube service for United States mail for the five years ended Mar'. 81, 1908, 1909, 1910, 
1911, and 1912. 



1908 

1909 

1910 

1911 

1912 

Total. 

Power: 

Steam power purchased. 

$3,070.00 
20.00 

$3,070.00 

174.46 

$2,884.31 
55.24 

$4,943.19 
176.32 
1, 825.00 

$4,208.15 

71.36 

1,830.00 

20.06 

361.06 

$18,175.65 

497.38 

9,243.36 

118.37 

Oil, waste, and packing. 

Engine and boiler room, labor.. 
Engine room, supnlies. 

1,860.91 

1,902.45 

79.41 

1,825.00 
18.90 

Repairs— 

Power plant and piping.... 


29.15 

390.21 

Compressors..7_ 

1.85 

12.04 


13.89 





Total power. 

4,952.76 

5,238.36 

4,783.45 

6,973.66 

6,490.63 

28,438.86 


Operating: 

Labor. 

4,098.27 

4,281.61 

3,797.11 
43.10 

3,910.18 

104.69 

3,806.41 
89.05 
129 30 

19,893.58 
309 63 

Supplies. 

46.58 

26.21 

Oil and waste. 

132.77 

64.98 

75.59 

52.14 

454.78 

Rent, light, heat, and power... 
Inspection. 

360.00 
2,082.30 

360.00 
1,759.21 

360.00 

1,696.99 

360.00 
1,821.05 

360.00 
1,680.64 

1,800.00 
9,040.19 
666. 75 

Mail teams. 

666. 75 

Traveling and miscellaneous... 
Fines. 

311.11 
30.14 

343.97 
83.43 

359.73 

178.91 

209.70 

1,403.42 

113.57 

Repairs— 

Tubes. 

442.51 

97.06 

126.39 

237.57 

357. 87 

786.26 

Terminal machinery. 

200. 73 

7.81 

63.17 

49.09 

18.11 

302.69 

Carriers. 

3,966.38 

402.84 

549.03 

666.99 

855.18 

6,440.42 

3.93 

Buildings and fixtures. 

.43 

1.80 

1.70 

Extraordinary. 

1,005.70 

2,400.00 

.2,400. 00 

643.38 

201.41 

6,650.49 



Total operating. 

12,676.49 

9,827.55 

10,139. 66 

7,550.56 

7,671.45 

47,865.71 


Repair shop: 

Indirect labor. 

54.61 

64.96 




119.57 

Expense- 

Supplies used. 

7.17 

4.80 

.25 



12.22 

Tools. 

41.50 

6.31 

11.00 



58.81 

Repairs, machinery, and tools.. 

.63 



.63 

Tpaming. 

24.78 

.83 




25.61 

Experimental work. 

26.00 




26.00 

Freight and express. 

9.47 

.50 

1.10 


11.07 




Total repair shop. 

137.53 

103.53 

11.75 

1.10 


253.91 



General expense: 

Salaries. 

2,700.15 

2,734.77 

4.38 

2,888.98 
25.50 

2,979.52 

81.33 

1,204.86 

12,508.28 
202.79 

Postage and stationery. 

47.08 

44.50 

Traveling. 

322.43 

113.95 

103.05 

190.45 

238.85 

968.73 

Telephone and telegraph. 

155.30 

155.00 

150.23 

183.58 

245.55 

889.66 

Rent, light, and heat. 

300.00 

300.00 

300.00 

300.00 

300.00 

1,500.00 

2.00 

Fines. 

2.00 

Legal . 

2,500.00 



500.00 

3,000.00 

1,643.53 

20.00 

Miscellaneous. 

'328.60 

627.48 

142.33 

312.25 

232.87 

Directors’ fees.. 

20.00 

Bonus on operating... . 




6.00 

78.82 

84.82 





Total general expense.... 

6,353.56 

3,935.58 

3,610.09 

4,553.13 

2,367.45 

20,819.81 

Grand total—power, oper¬ 
ating, repair shop, and 
general expense. 

24,120.34 

19,105.02 

18,544.95 

19,078.45 

16,529.53 

97,378.29 










































































































































232 


PNEUMATIC-TUBE SYSTEM 


Exhibit H — Continued. 

Schedule 5. 

American Pneumatic Service Co., Boston, Mass.—Statement of cost of operating 
pneumatic-tube service for United States mail of subsidiary companies for the year 
ended Mar. 81, 1908. 



Boston. 

New York. 

Chicago. 

St. Louis. 

Total. 

Power: 

Steam power purchased. 

$8, 400. 00 
14,422. 35 
1,067.90 

844, 679.94 

$9,522. 62 

83,070.00 

865,672.56 

TT.lppfrio nnwpr T^nrrVha.SP.fi 

12, 691.17 

27,113.52 
1,067.90 

Fuel 



TJ.fint, lipht and hfia.t. 

98.80 

1,560. 00 

1.96 


1,660.76 

Oil and waste. 

249.52 

'271.89 

211.09 

20.00 

752.50 

Engine and boiler room— 

Labor. 

2,130. 81 

7,430.52 

3,048.17 

1,860.91 

14,470.41 

Snrmlies . 

54.65 

79.62 

112.96 


247.23 

Repairs— 

Pnwpr ■nla.nt. a.rtri ■nmin^ 

165.27 

52. 85 

349. 03 


567.15 

Compressors and blowers. 

73.03 

170. 89 

264.54 

1.85 

510.31 






Total power. 

26,662.33 

54,245. 71 

26,201. 54 

4,952. 76 

112,062.34 


Operating: 

Labor. 

16,471.08 

22,651.92 
213.10 

17,249. 23 
222.03 

4,098. 27 

60,470.50 
684. 28 

Supplies . 

' 202.57 

46.58 

Oil and waste. 

956. 61 

356. 89 

465.52 

132.77 

1.911.79 

Rfint 1 lVht and heat 

277.98 

80. 86 

360. 00 

718. 84 

Inspection. 

3,455. 39 

2, 658. 20 
867. 20 

5,533.97 

2,082.30 

13,729. 86 
2,251.55 
4,482.97 
6,107. 62 

4,595.44 
1,965.92 
22,185.98 
219.15 

Mail teams . 

284. 85 

1,099.50 

Traveling and miscellaneous. 

2,925. 91 
46.64 

566.47 

679.48 

311.11 

Fines. 

516.45 

5,514.39 

1.478. 32 

30.14 

Repairs— 

Tubes. 

361.49 

2,313.12 

442. 51 

Terminal machinery. 

731.40 

575.54 

458. 25 

200.73 

Carriers. 

8,624.69 
35.54 

5,578. 74 
13.32 

4,016.17 

3,966.38 

Rnildines and fixtures. 

170.29 

F, xt raord in a ry 

1,000.00 

143. 41 

1,005.70 

2,149.11 



Total operating. 

35,374.15 

36,454. 36 

36,968. 01 

12. 676. 49 

121,473.01 



Repair shop: 

Indirect labor. 



147.41 

54.61 

202.02 

Expense- 

Supplies used. 



10.99 

7.17 

18.16 

Tools used. 


119.52 

43.37 

41.50 

204.39 

Rent, light, heat, and power. 


381.40 

270.00 

651.40 

RepairsT machinery and tools. 


18.13 

7.24 


25.37 

Teaming. 


1.00 

24.78 

25.78 

33.92 

Freight and express. 



24.45 

9.47 

Miscellaneous expense. 



.95 

.95 

Telephone and telegraph. 


4.35 


4.35 





Total repair shop. 


523.40 

505.41 

137.53 

1,166.34 



General expense: 

Salaries. 

4,858.72 

7,505.35 

186.01 

374.97 

6,163.81 

2,700.15 
47.08 
322.43 

21,228.03 

400.46 

1,703.74 

2,488.89 

952.42 

Post printing and stationery supplies.. 
Traveling. 

20.00 

15.81 

'147.37 
990.53 

Telephone and telegraph. 

443.00 

1,279.52 

52.42 

611.07 

155.30 

Rent, light, and heat. 

300.00 

300.00 

300.00 

Legal. 

537.73 

1,245.00 

1,782.73 
423.60 
3,855.92 
39.00 

Directors’ fees. 


95.00 

328.60 

Miscellaneous. 

231.85 

625.69 

498.38 

2,500.00 

Patent expense. 

39.00 





Total general expense. 

5,869.38 

10,695.69 

9,956.16 

6,353.56 

32,874.79 


Grand total—power, operating, 
repair shop, and general ex¬ 
pense. 

67,905.86 

101,919.16 

73,631.12 

24,120.34 

267,576.48 




































































































































PNEUMATIC-TUBE SYSTEM 


233 


Exhibit H — Continued. 

Schedule 6. 

American Pneumatic Service Co ., Boston, Mass.—Statement of cost of operating pneu¬ 
matic tube service for United States mail of subsidiary companies for the year ended 
Mar. 31, 1909. 



Boston. 

New York. 

Chicago. 

St. Louis. 

Total. 

Power: 

Steam power purchased. 

Electric power purchased. 

F uel. 

$8,400.00 
14,284.97 
19.51 
5.50 
442.39 
2,064.77 
43.90 

76.25 
23.09 

$36,853.34 
31,896.99 

$10,000.00 

10,601.64 

$3,070.00 

$58,323.34 

56,783.60 

19.51 

1,497.68 

1,420.36 

14,244.54 

249.35 

461.11 
458.60 
.75 

Rent, light, and heat. 

Oil and waste. 

Engine and boiler room labor. 

Engine and boiler room supplies. 

Repairs— 

Power, plant, and piping. 

Compressors and blowers. 

Building. 

1,480.00 
573.35 
7,097.20 
16.17 

69.40 
400.12 

12.18 
230.16 
3,180.12 
109.87 

315.46 
23.35 
. 75 

174. 46 
1,902.45 
79.41 

12.04 

Total power. 

Operating: 

Labor. 

Supplies. 

Oil and waste. 

Rent, light, and heat. 

Inspection. 

Mail team. 




25,321.36 

78,386.57 

24,473.53 

5,238.36 

133,419.82 

16,235.69 
219.63 
217.16 
183.46 
3,169.75 
117.07 
393.67 
12.00 

72.74 
185.38 
5,960.02 

2,400.00 

40,993.23 
74.30 
438.08 

2,867.61 
1,787.85 
1,041.37 
134.16 

5,788.66 
345. 42 
7,962.87 
5.10 
1,750.00 

16,021.57 
69.01 
181.22 
30.10 
4,749.89 
188.33 
833.06 
158,43 

* 213.31 
208.53 
5,884.03 
23.76 

4,281.61 
26.21 
64.98 
360.00 
1,759.21 

77,532.10 
389.15 
901.44 
573.56 
12,546.46 
2,093.25 
2,612.07 
388.02 

6,171.77 
747.14 
20,209.76 
29.29 
6,550.00 

Traveling and miscellaneous. 

Fines. 

Repairs— 

Tubes. 

Terminal machinery. 

Carriers. 

Building and fixtures. 

Extraordinary. 

Total operating. 

Repair shop: 

Indirect labor. 

343.97 
83.43 

97.06 
7.81 
402.84 
.43 
2,400.00 

29,166.57 

63,188.65 

28,561.24 

9,827.55 

130,744.01 


1.47 

360. 88 

64.96 

4.80 

6.31 

.63 

.83 

427.31 

4.80 
19.37 

1,077.90 
2.02 
.83 

3.80 
16.44 
26.00 

4.95 

Expenses — 

Supplies used. 


Tools used . 


11.46 
927. 90 

1.60 

150.00 

1.39 

Rent, light, heat, and power. 

Repairs—machinery and tools. 

Tea m in v .. 


Frri uh t an d pxnrpss.. 



3.80 

AriQpellanemis evnenses 


16.44 


ETmerimentai work ... 



26.00 

'T'plpnhrvnp. and tp.lppra.nh 


4.95 


Total repair shop. 

General expense : 

Salaries.. . 

Post printing and stationery supplies.. 

Traveling . 

Telephone and telegraph. 

Rent, light, and heat. 





962.22 

517.67 

103.53 

1,583.42 

5,443.93 
12.43 
10. 80 
551.97 
300.00 

7,376.13 
84.60 
1,309.18 
2,023.64 
300.00 
5,408.80 
690. 66 

5,977.82 
118.31 
1,121.46 
615.33 
300. 00 

2,734. 77 

4.38 
113.95 
155.00 
300.00 

21,532.65 
219. 72 
2,555.39 
3,345.94 
1,200.00 
5,408.80 
2,308.91 

Miscellaneous. 

Total general expense. 

Grand total—power, operating, 
repair shop, and general ex¬ 
pense . 

407.00 

583. 77 

627. 48 

6,726.13 

17,193.01 

8,716. 69 

3,935.58 

36,571.41 

61,214.06 

159, 730. 45 

62,269.13 

19,105.02 

302,318.66 



































































































































234 


PNEUMATIC-TUBE SYSTEM 


Exhibit H—Continued. 

Schedule 7. 

American Pneumatic Service CoBoston , Mass.—Statement of cost of operating pneu¬ 
matic-tube service for United States mail of subsidiary companies for the year ended 
Mar. 81, 1910. 



Boston. 

New York. 

Chicago. 

St. Louis. 

Total. 

Power: 

Steam power purchased.. 

18,400.00 
10,931.70 

$31,701.26 

$13,333.33 
8,905.32 

$2,884.31 

$56,318.90 
77,508.70 

Electric power purchased. 

57,671.68 

Rent, light, and heat. 

3.60 

' 602.50 

8.53 


614.63 

Oil and waste. 

345.46 

1,163.63 

179.09 

55.24 

1,743.42 

Engine and boiler room— 

Labor. 

1,905.84 

7,465.27 

2,020.18 

1,825.00 

13,216.29 

Supplies. 

23.18 

58.31 

99.16 

18.90 

' 199.55 

Repairs— 

Power plant and piping. 

610.73 

369.71 

116.23 

1,096.67 

Buildings.*. 

95.79 


95.79 





Total power. 

22,220.51 

99,032.36 

24,757.63 

4, 783.45 

150,793.95 





Operating: 

Labor. 

15,988.03 

54,419.34 

18,811.53 

3, 797.11 

93,016.01 

401.59 

Supplies. 

122.47 

' 156.82 

79.20 

43.10 

Oil and waste. 

193.16 

552.83 

319.42 

75.59 

1,141.00 

Rent, light, and heat. 

30.20 

16.70 

77.15 

360.00 

484. On 

Inspection. 

2,696.61 

3,725.98 

3,702.82 

1,696.99 

11,822.40 

Automobile expense. 

91.35 



91.35 

Mail teams. 

138.10 

468.75 

666.75 

1,273.60 

Traveling and miscellaneous. 

261.96 

1,179.31 

637.71 

359.73 

2,438.71 
105. 40 

Fines. 

1.00 

60.00 

44.40 

Repairs— 

Tubes. 

58.91 

388.01 

347.23 

126.39 
63.17 
549.03 

920.54 
3,047.44 
23,198.78 
207.01 
6,900.00 

Terminal machinery. 

408.26 

1,338.34 

1,237.67 

Carriers. 

4,803.00 

12,447.33 

5,399.42 

Buildings and fixtures. 

77.18 

5.36 

' 122.67 

1.80 
2,400.00 

Extraordinary. 

2,400.00 

2,100.00 




Total operating. 

27,178.88 

76,481.37 

31,247.97 

10,139.66 

145,047.88 




Repair shop: 

Materials, etc. 



.25 


.25 

371.23 

.77 

35.31 

150.00 

9.02 

8.00 

13.72 

6.04 

2.40 

Indirect labor. 


91.27 

279.96 


Expense— 

Supplies used. 


.52 

.25 

11.00 

Tools used. 


24.31 

Rent, light, heat, and power. 


150.00 

Repairs— 

Buildings and fixtures. 



9.02 


Machinery and tools. 


8.00 


Teaming.. 


13.72 


Freight and express. 



5.54 

.50 

Experimental work. 


2.40 





Total repair shop. 


125.98 

459.01 

11.75 

596.74 



General expense: 

Salaries. 

5,688.53 

44.12 

9,147.11 

51 20 

6,280.55 

130.78 
826.59 
596.09 
300.00 

2,888.98 

25.50 
103.05 
150.23 
300.00 

24,005.17 

251.60 
1,475.24 
3,963.43 
1,210.40 
5,338.78 
40.00 
678.32 

Postage, printing, and stationery sup¬ 
plies . 

Traveling. 

18.40 

527.20 

2,778.01 

310.40 

Telephone and telegraph. 

439.10 

Rent, light, and heat/.. 

300.00 

Legal.. 7.... 

5,338.78 

20.00 

Directors’ fees. 


20.00 

337.92 


Miscellaneous. 

20.45 

177.62 

142.33 


Total general expense. 

6,510.60 

18,350.32 

8,491.93 

3,610.09 

36,962.94 


Grand total—Power, operating, 
repair shop, and general ex¬ 
pense . 

55,909.99 

193,990.03 

64,956.54 

18,544.95 

333,401.51 














































































































































PNEUMATIC-TUBE SYSTEM 


235 


Exhibit H—Continued. 

Schedule 8. 

American Pneumatic Service Co., Boston, Mass.—Statement of cost of operating pneu¬ 
matic-tube service for United States mail of subsidiary companies for the year ended 
March 31, 1911. ' 



Boston. 

New York. 

Chicago. 

St. Louis. 

Total. 

Power: 






Steam power purchased. 

$7,2S3.30 

$35,337. 23 

$11,262. 42 

$4,943.19 

$58,826.14 

Electric power purchased.... 

9.662. 74 

61,527.11 

8,691.16 


79 881 01 

Rent, light, and heat. 

' 582. ] 4 

11*. 10 


593 24 

Oil and waste. 

432. 75 

1,177.36 

313.96 

176.32 

2,100. 39 

Engine and boiler room labor. 

1,955.97 

7,118. 65 

2, 232.48 

1,825.00 

13'. 132.10 

Engine and boiler room supplies. 

19. 88 

81.67 

50.06 


151 61 

Signal wires.tT. 

138. 96 

563. 26 

90.95 


793 17 

Repairs— 




Power plant and piping. 

407.13 

661.67 

435. 43 

29.15 

1.533.38 

Compressors and blowers. 


.52 



52 

Buildings. 



89. 77 


89. 77 





Total power. 

19,900. 73 

107,049.61 

23,177.33 

6,973.66 

157,101.33 

Operating: 






Labor. 

15,597. 71 

57,915.45 

20,429. 90 

3,910.18 

97,853.24 

Supplies. 

112.17 

181.20 

197. 70 

104. 69 

595. 76 

Oil* and waste. 

179.63 

471.89 

337. 44 

52.14 

1,041.10 

Rent, light, and heat. 


22. 30 

35 94 

360 00 

418 24 

Inspection. 

2,659.09 

4,214.29 

3,485.91 

1,821.05 

12,180.34 

Mail teams. 

113.97 

151.25 

450.00 

237.57 

715. 22 

Traveling and miscellaneous. 

209.41 

1,213.63 

335.48 

178. 91 

1,937.43 

Repairs— 






Tubes. 

275. 86 

991.56 

301.83 


1 331 68 

Terminal machinery. 

460.82 

1,662.80 

1,207.32 

49.09 

3,380. 03 

Carriers. 

3,408. 28 

12,055.00 

6,487. 74 

666.99 

22,618.01 

Buildings and fixtures. 

3.75 

66.43 

31. 77 

1.70 

103.65 

Extraordinary. 

2, 632.06 

40,179. 45 

3,019.57 

643.38 

46,474. 46 

Total operating. 

25,652. 75 

119,125.25 

36,320.60 

7,550. 56 ' 

188,649.16 

Repair shop: 






Indirect labor. 



294. 87 


294 87 

Expense, tools used. 


63.30 



63.30 

Rent, light, heat, and power. 



262. 50 


262. 50 

Teaming. 


2. 75 



2. 75 

Freight, and express. 



. 75 

1.10 

1 85 

Miscellaneous expense. 



3. 79 


3. 79 







Total repair shop. 


66.05 

561.91 

1.10 

629.06 

General expense: 






Salaries. 

5, 798. 68 

9,579. 94 

6,628. 70 

2,979.52 

24,986. 84 

Post, printing and stationery supplies. 

58.12 

136. 97 

142. 62 

81.33 

419.04 

Traveling. 

12. 60 

934. 77 

522.18 

190.45 

1,660.00 

Telephone and telegraph. 

531.38 

3,221.65 

660.02 

183. 58 

4,596.63 

Rent, light, and heat. 

300. 00 

418.00 

300.00 

300. 00 

1,318.00 

Legal. 


2,929. 99 

2,531.25 

500.00 

5,961.24 

Ernes. 

6.00 

' 100. 00 

163.83 


271.83 

Directors’ fees.. 


50. 00 

20. 00 


70.00 

Miscellaneous. 

126. 04 

747.15 

479.47 

312. 25 

1.664.91 

Bonus on operating. 

44.00 

115.00 

40.00 

6. 00 

205,00 

Total general expense. 

6,876. 82 

18,233. 47 

11,490. 07 

4,553.13 

41,153.49 

Grand total—power, operating, 






repair shop, and general ex- 






pense. 

52,430.30 

244,474.38 

71,549. 91 

19,078.45 

387,533.04 








































































































































236 


PNEUMATIC-TUBE SYSTEM 


Exhibit H — Continued. 

Schedule 9. 

American Pneumatic Service Co., Boston, Mass.—Statement of cost of operating pneu¬ 
matic-tube service for United States mail of subsidiary companies for the year ended 
March 31, 1912. 



Boston. 

New York. 

Chicago. 

St. Louis. 

Total. 

Power: 

Steam power purchased. 

$5,719.71 
9,032.36 

$27,863.90 
68.349.30 
600.00 

$8,152.90 

$4,208.15 

$45,944.66 

F!lfip.trir» nnwfir rmrchasfid 

10,784.60 
11.44 

88,166.26 
611.44 

Pent light and heat, _ •_ 


Oil and waste. 

302.01 

1,480.30 

244.58 

71.36 

2,098.25 

Engine and boiler room— 

Labor. 

1,990.76 

22.02 

7,367.45 

81.92 

2,574.92 

73.93 

1,830.00 

13,763,13 

Supplies. 

20.06 

197.93 

Signal wires. 

154.16 

709.50 

91.70 


955.36 

Repairs— 

Power, plant, and piping. 

51.27 

1,520.99 

1,008. 58 
43.33 

361.06 

2,941.90 

Buildings 


43.33 






Total power. 

17,272.29 

107,973.36 

22,985.98 

6,490.63 

154,722.26 


Operating: 

Labor. 

14,872.66 
108.99 

65,344.40 

81.84 

21,573.06 
138.90 

3,806.41 

89.05 

105,596.53 

Supplies. 

418. 78 

Oil and waste. 

233.82 

376. 76 

428.71 

129.30 

1,168.59 

Rent, light, and heat. 

7.20 

117.24 

360.00 

484.44 

Inspection. 

2,840.54 
219.32 

4,836.19 

4,205.19 

1,680.64 

13,562.56 
219.32 

Automobile expense. 

Mail teams . 

124.92 

124.00 

918.00 


1,166.92 

2,112.83 

Traveling and miscellaneous. 

170.65 

1,276.76 

455. 72 

209. 70 

Repairs— 

Tubes. 

546. 66 

1,558.57 
3,165.97 

170.51 

357. 87 

2,292.59 
6,534.06 
37,755.82 
136. 70 

Terminal machinery. 

248.01 

3,138.19 
9,017.34 
102.33 

18.11 

Carriers. 

4,761.40 

23,121.90 

855.18 

Buildings and fixtures. 

3.93 

30.44 

Extraordinary. 

736.85 

2,999.16 

5,156.84 

201.41 

9,094.26 


Total operating. 

24,867. 75 

102,923.19 

45,081.01 

7,671.45 

180,543.40 


Repair shop: 

Indirect labor. 



15.40 


15.40 

Expense- 

Supplies used. 


23.92 

5.24 


29.16 

Tools used. 


130. 66 

115.75 


246.41 

Rent, light, heat, and power. 


48.50 


48.50 

Repairs, buildings and fixtures. 


9.17 


9.17 

Teaming. 


19.75 

30.00 


49. 75 

Freight and express. 


.29 


.29 





Total repair shop. 


183. 79 

214.89 


398. 68 




General expense: 

Salaries . 

2,926.58 

3.45 

13,594.00 

142.39 
745.50 

4,508. 21 

109.49 
493. 00 

1 204.86 

22,233. 65 

299.83 
1,477.35 

Post office printing and stationery 

supplies. 

Traveling. 

44. 50 
238.85 

Telephone and telegraph. 

534.38 

3,740. 20 

709.21 

245. 55 

5,229.34 
1.239.10 
3 245 25 

Rent, light, and heat. 

300. 00 

'329.10 

310. 00 

300.00 

Legal... 

3,170.25 

75.00 

• Fines. 

2.00 

' ISO. 00 

51.00 

2.00 

235. 00 
295.00 
1.295. 64 
1,335.02 

Directors’ fees. 

75.00 

165.00 

35.00 

20. 00 

Miscellaneous. 

40.16 

665.73 

356. 88 

232. 87 

Bonus on operating. 

269.03 

752.49 

234. 68 

78.82 


Total general expense. 

4,150. 60 

23,484.66 

6,882.47 

2,367. 45 

36,885.18 


Grand total—power, operating, 
repair shop, and general ex¬ 
pense . 

46,290. 64 

234,565.00 

75,164. 35 

16,529.53 

372,549.52 










































































































































PNEUMATIC-TUBE SYSTEM 


237 


Exhibit I. 

American Pneumatic Service Co.—Summary of construction charges to Dec. 31, 1912. 



Boston 

(Exhibit 

J). 

New York 
and Brooklyn 
(Exhibit K). 

Chicago 

(Exhibit 

L). 

St. Louis 
(Exhibit 
M). 

Total. 

Direct construction items. 

Legal expenses. 

$399,585.80 

$2,497,182.61 

$506,504.33 
31,215.89 
32,998. 20 

59,470.34 

$107,356.95 
12,800.00 
13,500.00 

15,832.16 

$3,510,629.69 
44,015.89 
137,183.06 

75,302.50 
410,743.18 
134,000.00 
33,773.30 

275,000.00 
63,264.35 

15,000.00 

Interest. 


90,684. 86 

Discount and expense account, sale 
of securities. 


Royalties. 


410,743.18 
134,000. 00 
33,773.30 

Patent rights. 




Unidentified expenses. 




Stock of Chicago Pneumatic Service 
Co., account franchise. 


275,000.00 


Organization expense. 


63,264.35 

15,000.00 


Excess, account Ryan contract (see 
Exhibit K for details). 




Profit or loss on contracts made by 
American Pneumatic Service Co.... 

Total cost, as per ledgers. 




399,585.80 

45,524.54 

3,244,648.30 

905,188. 76 

57,078. 79 

149,489.11 

37,205. 64 

4,698,911.97 

25,651.39 

445,110.34 

3,244,648.30 

848,109.97 

186,694.75 

4,724,563.36 


Note. —Direct construction items charged New York and Brooklyn in this statement include the Ryan 
contract for $590,000, of which $100,000 was paid in stock, and the Belden contract for $400,000, one-haif of 
which was paid in stock and one-half in bonds. 

See text of report for items charged plant and franchise on books of Tubular Dispatch Co., and the New 
York Pneumatic Service Co., which have been omitted by us in making up figures showing cost of New 
York and Brooklyn tubes. 


Exhibit J. 

American Pneumatic Service Co. construction charges to Dec. 31, 1912, for Boston lubes . 


Original construction: 

Freight and express... $1,136. 38 

Miscellaneous construction. 55, 788. 85 

Ten per cent on construction to Batcheller 

Construction Co. 4, 049. 66 

Sundry general expense. 1, 458. 35 

Engineers’ salaries and expenses. 7, 234. 38 

-$69, 667. 62 

Transferred to the following construction ac¬ 
counts: 

North Station line. 63,001.19 

Ten-inch line. 6, 615. 01 

Associated Press line. 51. 42 

-- 69,667.62 


North Station line: 

Amount transferred from original construction 63,001.19 
Charges for material, labor, etc. 5,197. 22 


Total ledger cost. $68,198. 41 

Ten-inch line: 

Amount transferred from original construction 6, 615. 01 

Miscellaneous construction. 230, 945.45 

Engineers’salaries and expenses. 646.55 

238, 207. 01 

Relocation of stations. 7, 339.10 


245, 546.11 

Profit on contract. 22, 314. 51 


Total ledger cost. 267,860. 62 


































































238 


PNEUMATIC-TUBE SYSTEM. 


South Station line: 

Labor. 

Miscellaneous construction 

Profit on contract. 


$1, 617. 60 
62, 734. 51 

-$64, 352.11 

. 19, 855. 43 


Total ledger cost. $84, 207. 54 

Power control: 

Cost of power-saving device. 2, 111. 49 


Total ledger cost of United States mail tube lines and power control. 422,408. 06 
Small tube lines: 

Associated Press— 

Amount transferred from original con¬ 
struction. $51.42 

Additional charges. 15, 250. 43 


15, 301. 85 

Profit on contract. 3, 354. 60 

. -- $18, 656. 45 

Financial Press Association—Material, labor, etc. 1, 845. 83 

Postal Telegraph—Material, labor, etc. 2, 200. 00 

- 22, 702. 28 


Total ledger cost of United States mail and small tube lines. 445,110. 34 


Exhibit K. 

American Pneumatic Service Co. construction charges to Dec. 31, 1912, for New York 

and Brooklyn tubes. 

Original construction: 

Contract with C. J. Ryan & Co., as shown by books of 


Tubular Dispatch Co. ($100,000 of which was paid 

for in capital stock of latter company). $590, 000. 00 

Taxes, account Brooklyn Bridge. 916. 66 

Bond premium for street opening and petty charges. 406. 26 

Belden & Co. contract, payable one-half in capital 
stock and one-half in bonds of the N. Y. M. & N. T. 

Co. 400, 000. 00 

Organization expense ($5,000 paid in capital stock).. $7, 264. 35 

Interest on bonds, July 1 to Aug. 1, 1898. 833. 33 

Disbursements and service rendered (paid in capital 
stock).. 56,000.00 


Cost of property, franchises, patent 
rights, and construction, against which 
was issued 6,050 shares capital stock of 

N. Y. M. & N. T. Co. $605, 000. 00 

Less taken to account above as Ryan 

contract. 590, 000. 00 

-- 15, 000. 00 

Patent rights assigned by W. A. H. Bogardus, Aug. 4, 

1902, for treasury stock. 134, 000. 00 

- 213, 097. 68 


Total cost per ledger of N. Y. M. & N. T. Co. 1, 204,420. 60 


N ew construct ion : 

Engineers’ and draftmen’s salaries and 

expenses. $86, 878. 07 

Inspectors’ salaries. 40, 219. 77 

Pipe, fittings, etc. 400, 546. 46 

Trenching and pipe laying. 638,460. 47 

Miscellaneous. 29,414.67 

Extraordinary expenses, moving sta¬ 
tions. 21,193.26 








































PNEUMATIC-TUBE SYSTEM. 


239 


New construction—Continued. 

Extraordinary repairs.. $20,157. 77 

Terminal machinery. 289, 725. 24 

Insurance during construction. 12,611.24 


Deduct : 

Material charged above, not 

used.$26,138.70 

Transfer to franchise ac¬ 
count for material and la¬ 
bor used to rehabilitate 
lines of New York Pneu¬ 
matic Service Co. prior to 
Sept. 30, 1907. 70,000.00 


1, 539, 206. 95 


96,138. 70 


1, 443, 068. 25 

New carriers. 48, 707. 04 

-$1,491, 775. 29 

Interest. 89, 851. 53 

Sundry expense to Mar. 31, 1911, for 
which no information can be ob¬ 
tained. 33,773.30 

Royalty— 

To Mar. 31, 1911.$405, 310. 79 

To Jan. 31, 1912. 5,432.39 

- 410, 743.18 

- 534, 368. 01 


Total cost per ledger of N. Y. M. & N. T. Co.$2, 026,143. 30 

New construction (Madison Square, Wall Street and “P” 
lines): 

Sundry material and labor. 10, 763. 48 

New carriers. 3, 071. 50 

Sundry equipment. 249. 42 


Total per ledger N. Y. M. & N. T. Co. 3, 244, 648. 30 


Exhibit L. 

American Pneumatic Service Co. construction charges to Dec. 31, 1912, for Chicago tubes . 


Original construction: 

Pay roll (sundry labor). $25, 398.71 

Freight and express. 437. 69 

General expense. 3, 689. 66 

Miscellaneous construction.... 367, 006. 11 

Sundry cash expenses. 2, 007. 05 

Engineers—Salaries and expenses. 6, 549. 40 

Chicago repairs and transfer from operating. 2, 456. 93 

Operating expenses charged on account of 
delays. 5, 736. 69 


41Q 0Q9 94 

New carriers. 13’, 420'. 00 

- $426, 702. 24 

Legal expenses paid— 


A. A. Goodrich. 29, 215. 89 


Interest—Oct. 12, 1903, to June 30, 1904, on 

$767,400 at 6 per cent. 32, 998. 20 

Proportion of discount and expenses 
charged, account of sale of bonds of Ameri¬ 
can Pneumatic Service Co. 59, 470. 34 








































240 


PNEUMATIC-TUBE SYSTEM 


Original construction—Continued. 

Stock of Chicago Pneumatic Service Co. 
held as an investment by American 
Pneumatic Service Co. given account of 
franchise.$275, 000. 00 


398, 684. 43 

Less loss on contract. 57, 078. 79 

-— $341, 605. 64 


Total ledger cost of original construction. $768, 307. 88 

Northwestern station: 

Charges for material, labor, etc. 24,173. 91 

Charges for new carriers. 1, 348. 05 


Total ledger cost. 25, 521. 96 

Station U to Northwestern Station: Charges for material, 
labor, etc. 17, 315. 63 


Total ledger cost. 17,315. 63 

Station U: Charges for material, labor, etc. 5, 524. 38 


Total ledger cost. 

Fifth Avenue tunnel: 

Charges for material, labor, etc 
Charges for carriers. 


. 5, 524. 38 

$28, 813. 55 

2 , 000 . 00 

-- 30, 813. 55 


Total ledger cost. 30, 813. 55 

Power control: Cost of power-saving device. 626. 57 

- 626.57 


Grand total ledger cost 


848,109.97 


Exhibit M. 

American Pneumatic Service Co., construction charges to Dec. 31, 1912, for St. Louis 

tubes. 


Pay roll (sundry labor). $3, 679. 47 

Freight and express. 160. 25 

General expense. 631. 79 

Miscellaneous construction. 91, 354. 20 

Sundry cash expense. 2, 348. 13 

Rent: Terminal. 180. 00 

Extraordinary repairs. 1, 000. 00 


99, 353. 84 
3, 000. 00 

- $102, 353. 84 

12, 800. 00 

13, 500. 00 

15, 832. 16 


37, 205. 64 

- 79, 337. 80 


Total cost per their books of 8-inch line. 181, 691. 64 

Charges for material, labor, etc., for new post-office extension. 5, 003.11 

Total ledger cost. 186, 694. 75 


New carriers. 

Legal expenses paid Nathan Frank... 

Interest, Oct. 1, 1903, to June 30, 1904, on $300,000 at 6 

per cent. 

Proportion of dicount and expenses charged account of 
sale of bonds of American Pneumatic Service Co. 


Profit originally charged to construction.$156, 514. 00 

Less transferred to reserve for completion. 119, 308. 36 


















































PNEUMATIC-TUBE SYSTEM. 


241 


Exhibit N. 

Tubular Dispatch Co., property franchises, patents, and construction account. 


Patent rights and services rendered (issue of capital stock). $1, 299, 500. 

Discount on 600 bonds (par $1,000), sold at $732. 160. 800. 

Commission on 600 bonds sold. 40, 000. 

Interest on outstanding bonds prior to operating. 2, 040. 

Cash paid for permits opening streets. 169. 

Disbursements to Dec. 31, 1897, incident to organization: 

General expenses. $21, 622. 51 

Legal expenses (includes disbursements to Oct. 31, 

1898). 15,666.66 

Salary account. 2, 399. 99 

Drawing materials. 25. 06 

Traveling expenses. 539. 45 

-- 40, 253. 

Central Trust Co. (for receiving funds on account converti¬ 
ble first-mortgage bonds and disbursing same, $545,459.25, 

at | per cent). 681. 

C. J. Ryan & Co. (per settlement of contract and completion 

of same). 590, 000. 

C. J. Ryan & Co. (amounts charged to C. J. Ryan & Co., 

and which were not all owed in settlement). 8, 636. 

W. A. H. Bogardus: License to use patent rights. 1, 600. 


00 

00 

00 

54 

37 

67 

82 

00 

03 

00 


78419—13-16 


2,143, 681. 43 
















































































































t 













































































REPORT OF 

ALFRED BROOKS FRY 

CONSULTING ENGINEER TO THE COMMISSION TO INVESTIGATE THE 
PNEUMATIC-TUBE POSTAL SYSTEM, ON THE ENGINEERING AND 
ALLIED FEATURES CONNECTED WITH THE FEASIBILITY 
AND DESIRABILITY OF THE GOVERNMENT’S PUR¬ 
CHASE AND OPERATION OF THE PRESENT 
POSTAL PNEUMATIC-TUBE SERVICE IN 
CITIES WHERE NOW INSTALLED 


243 

























































































. 
























































FOREWORD. 


New York, March 10, 1913. 

This report gives— 

Descriptions and inventories of the plants and equipment of the 
postal pneumatic tube companies in Boston, New York, Brooklyn, 
Philadelphia, Chicago, and St. Louis. 

Statements in detail of the physical condition of said plants and 
their equipment at the present time. 

Reported construction costs of said plants and their equipment. 

Estimates of costs of reproducing same. 

Tentative estimates of the probable “value” to the Government 
of said postal tube systems. 

Reported costs of operation of said systems. 

Estimates of Government costs of operation of the same. 

Miscellaneous data regarding said plants, including detailed state¬ 
ments of stoppages and derangements during the past year; notes on 
street work or other municipal conditions that would affect typical 
new tube construction, notably in New York; notes on the system 
owned and operated by the United States Treasury Department 
between the United States customhouse and United States appraisers' 
warehouse, New York; certain briefs on related subjects, submitted 
to the consulting engineer by the representatives of the tube com¬ 
panies; reports of the engineers employed in the cities heretofore 
named in this investigation, etc. 

This foreword is followed by a table which gives the principal data 
concerning the tube companies in the cities heretofore named. It is 
a resume of body of report. 

A. B. F. 

245 




























. 

p 








































I 1 1 1119 




REPORT OF ALFRED BROOKS FRY. 


New Y'ork, March 10, 1913. 
The Chairman Pneumatic Tube Commission, 

Senate Office Building, Washington, D. C. 

Sir: Referring to your letter of February 4, 1913, and to my letter 
of January 29, I beg to transmit herewith the following report on the 
engineering and allied features connected with the feasibility and de¬ 
sirability of the Government’s purchase and operation of the present 
postal pneumatic tube service m cities where now installed. 

I am taking up the matters concerning systems in said cities in the 
order of postal pneumatic tube mileage, considering, for obvious 
practical reasons, the inclusion of the tube system of Brooklyn in that 
of New York. 

NEW YORK AND BROOKLYN PNEUMATIC TUBE SYSTEM. 

Owner: The New York Pneumatic Service Co. 

FIRST. PHYSICAL DESCRIPTION. 

Installations made from 1897 to date. 

Routes shown by inclosed map marked “ Exhibit A, map showing 
pneumatic mail tube lines in New York, N. Y., and projected exten¬ 
sions thereto. May 1, 1910. Revised August 23, 1910, January 1, 
1911, June 27, 1912.” 

Length of tubing in use (including Brooklyn), 54.2830 miles. 

Note. —On this date the Government is paying the company for 
27.1189 double miles (25.7689 miles in New YYrk and 1.35 miles in 
Brooklyn), or 54.2378 double miles. The difference between “paid” 
and ‘ ‘ used ’’ mileage is as follows: 

(1) 0.0121 mile added in alterations in Chambers and Pearl 
Streets, for which an official order has not been given. 

(2) 0.0092 mile in the Brooklyn Station L line, payment on 
which is limited by contract to a maximum of 1.35 miles, while actual 
distance is 1.3592 miles. 

(3) Increase in line at Station Y due to moving machinery 0.0008 
mile, total 0.0221 mile. 


Street vaults. 112 

Standpipes. 58 

Sets of bends. 1> 945 

Closures. 1, 335 

Number of carriers, 1,500 per set, total. 3,000 


Note. —The official mileage until October 8, 1912 (including 
Brooklyn), was 26.5230. On that date an official order was issued 
which increased the official mileage to 27.1189 miles, as stated above. 
Note also that the statement of service, mileage, etc., as given in 

247 








248 PNEUMATIC-TUBE SYSTEM. 

previous reports, covers to tlie end of the company’s last fiscal year, 
1 . e., March 31,1912. 

Reference is had to Exhibit B, New York Pneumatic Service Co., 
List of Equipment, February 5, 1913, from which the following is 
summarized: 


STATION AND POWER EQUIPMENT. 


Brooklyn, Station L.: 

Terminals— 

1 sluice-gate closed receiver, No. 7. 

1 gravity transmitter, No. 6. 

Brooklyn, general post office: 

Terminals— 

2 sluice-gate open receivers, Nos. 3, 5. 

1 gravity transmitter, No. 4. 

1 cradle transmitter, No. 2. 

Power plant— 

2 75-horsepower Rand drill duplex steam compressors, Nos. 112-3, 114-5. 

1 Laidlaw-Dunn-Gordon duplex steam compressor. No. 116-7. 

2 gauge boards. 

1 air receiver. 

New York, general post office: 

Terminals—- 

5 sluice-gate open receivers, Nos. 13, 15, 17, 19, 21. 

3 cradle transmitters, Nos. 12, 14, 16. 

2 gravity transmitters, Nos. 18, 20. 

Power plant— 

2 75-horsepower Rand drill duplex steam compressors, Nos. 101-102, 

107-108. 

1 100- horsepower Ingersoll duplex steam compressor, Nos. 105-106. 

3 sets direct-connected Connersville motor blowers, Nos. 109, 110. 

1 direct-connected Laidlaw duplex motor compressor, No. 111. 

4 panel boards. 

4 air receivers. 

1 Sprague 6 H. P. exhaust vent fan. 

Station P: 

Terminals— 

1 sluice-gate closed receiver, No. 9. 

1 gravity transmitter, No. 8. 

Wall Street Station: 

Terminals—1 wheel machine, i. e., selective combination receiver and trans¬ 
mitter, No. 1. 

Hudson Terminal Station: 

Terminals— 

1 sluice-gate closed receiver, No. 11. 

1 gravity transmitter, No. 420. 

S tation V: 

Terminals— 

1 revolving-valve closed receiver, No. 94. 

1 gravity transmitter, No. 92. 

Station A: 

Terminals— 

2 revolving-valve closed receivers, Nos. 89, 91. 

2 gravity transmitters, Nos. 88, 90. 

3 standard panel boards. 

Station O: 

Terminals— 

3 revolving-valve open receivers, Nos. 81, 83, 85. 

3 gravity transmitters, Nos. 80, 82, 84. 

1 motor time lock, No. 321. 

Power plant— 

3 direct-connected Connersville motor blowers, Nos. 124, 125, 126. 

1 direct-connected Laidlaw duplex motor compressor No. 127. 

1 combination automatic remote control panel board. 

3 air receiverp. 


PNEUMATIC-TUBE SYSTEM. 


249 


Station C: 

Terminals— 

1 sluice-gate closed receiver, No. 87. 

1 gravity transmitter, No. 86. 

Station E: 

Terminals— 

2 sluice-gate closed receivers, Nos. 77, 79. 

2 gravity transmitters, Nos. 76, 78. 

1 motor time lock. 

Times Square station: 

Terminals— 

3 sluice-gate open receivers, Nos. 71, 73, 75. 

3 gravity transmitters, Nos. 70, 72, 74. 

2 motor time locks, No. 317. 

Power Plant— 

2 direct-connected Connersville motor blowers, Nos. 139, 140. 

2 direct-connected Laidlaw duplex motor compressors, Nos. 141, 142. 

3 standard panel boards. 

1 combination automatic remote control panel board. 

2 air receivers. 

Station G: 

Terminals— 

2 sluice-gate closed receivers, Nos. 67, 69. 

2 gravity transmitters, Nos. 66, 68. 

Station N: 

Terminals— 

1 sluice-gate closed receiver, No. 65. 

1 gravity transmitter, No. 64. 

Station W: 

Terminals—- 

2 sluice-gate open receivers, Nos. 61, 63. 

2 gravity transmitters, Nos. 60, 62. 

Power plant: 

1 direct-connected Connersville motor blower, No. 129. 

2 direct-connected Laidlaw duplex compressors, Nos. 128, 130. 

3 panel boards. 

1 air receiver. 

Station H: 

Terminals— 

2 sluice-gate closed receivers, Nos. 57, 59. 

2 gravity transmitters, Nos. 56, 58. 

Station I: 

Terminals— 

2 revolving valve closed receivers, Nos. 95, 97. 

2 gravity transmitters, Nos. 94, 96. 

Station J: 

Terminals— 

2 sluice-gate open receivers, Nos. 53 and 55. 

2 gravity transmitters, Nos. 52 and 54. 

1 motor time lock. 

Power plant— 

2 direct-connected Connersville motor blowers, Nos. 131 and 132. 

1 direct-connected Laidlaw duplex motor compressor, No. 133. 

2 standard panel boards. 

1 combination automatic remote control panel board. 

2 air receivers. 

Station L: 

Terminals— 

1 sluice-gate open receiver, No. 49. 

1 sluice-gate closed receiver, No. 51. 

2 gravity transmitters, Nos. 48 and 50. 

Power plant— 

2 direct-connected Connersville motor blowers, Nos. 134 and 135. 

2 combination automatic remote control panel boards. 

1 auxiliary motor compressor set, No. 148. 

2 air receivers. 

1 auxiliary air receiver. 


250 


PNEUMATIC-TUBE SYSTEM. 


Station U: 

Terminals— 

2 sluice-gate closed receivers, Nos. 45 and 47. 

2 gravity transmitters, Nos. 44 and 46. 

Station K: 

Terminals— 

2 sluice-gate open receivers, Nos. 41 and 43. 

2 gravity transmitters, Nos. 40 and 42. 

Power plant— 

2 direct-connected Connersville motor blowers, Nos. 136 and 137. 

1 direct-connected Rand duplex motor compressor, No. 13«. 

1 standard panel board. 

2 combination automatic remote control panel boards. 

2 air receivers. 

1 auxiliary motor-compressor set, No. 147. 

1 auxiliary tank. 

1 36-inch 2-horsepower exhaust fan. 

Station Y: 

Terminals— 

2 sluice-gate closed receivers. Nos. 37 and 39. 

2 gravity transmitters, Nos. 36 and 38. 

Grand Central Station: 

Terminals— 

3 sluice-gate open receivers, Nos. 31, 33, 35. 

3 gravity transmitters, Nos. 30, 32, 34. 

1 motor time lock. 

Power plant— 

3 direct-connected Connersville motor blowers, Nos. 143, 144, 145. 

1 direct-connected Laidlaw motor compressor. 

2 standard panel boards. 

2 combination automatic remote control panel boards. 

2 air receivers. 

1 carrier lift. 

Station F: 

Terminals— 

1 revolving-valve closed receiver. 

1 gravity transmitter. 

Madison Square Station: 

Terminals— 

2 revolving-valve open receivers, Nos 25, 27. 

2 gravity transmitters, Nos. 24, 26. 

1 motor time lock, No. 312. 

Power plant— 

2 Philadelphia Corliss duplex compressors, Nos. 118-9, 120-1. 

1 Rand duplex compressor, No. 122-3. 

2 air receivers. 

Station D: 

Terminals— 

1 revolving-valve closed receiver, No. 23. 

1 gravity transmitter, No. 22. 

Note.— Necessary air piping, steam piping, auxiliary piping, electric wiring, tools, 
lockers, accessories, etc., go with each station. 

SHOP AND STREET EQUIPMENT. 

[As per inventory marked “Exhibit B, N. Y. & B. No. 1.”] 

Said inventory comprises a property list, with a statement as to the 
condition of the articles enumerated and, where practicable, a state¬ 
ment of the age and cost, so far as same can be determined. It is 
proper here to remark that, subject to the notations in said inventory, 
the general going condition of the plant and apparatus is very good. 
This is illustrated by report hereto attached marked “Exhibit C, 
N. Y. & B. No. 2,” compiled by the postmaster’s office, New York, of 


PNEUMATIC-TUBE SYSTEM. 


251 


pneumatic-tube stoppages during the calendar year, 1912. Said 
report gives the date ol all stoppages, the stations affected, the 
duration of said stoppages, and the cause thereof. 

lo the report ol the postmaster, New York, is attached a letter 
dated February 14, 1913, marked “Exhibit C, X. Y. & B. No. 3,” 
from the postmaster, Brooklyn, which states that the stoppages in 
the Brooklyn portion ol the Yew York system average but about 
two a year and are of short duration. 

Hereinafter comment is made on the matter of stoppages in the 
various systems, but it is here recorded that there were but four 
stoppages per mile of tube per year in the New York and Brooklyn 
postal lines during the year i912, obviously thus showing good 
mechanical condition and intelligent operation. 

Particular consideration has been given the matter of the probable 
condition ol the underground tubes themselves, notably with reference 
to those lines that were installed in 1897 and 1898; but frankly it must 
be conceded that any present general physical examination of the 
underground tube lines in New York or the other large cities would 
be impracticable because of the time required, derangement to the 
postal service, and obvious expense. 

For the most part it would mean digging trenches, similar to those 
required for new construction work, in busy streets passing through 
the heart of our largest cities. And there would be no absolute 
guaranty that because 100 met of any given line was found per¬ 
fectly sound the next 100 feet would be in the same condition. 

We can be guided in part in our conclusions as to the condition of 
these underground tubes by the appearance of such samples as it has 
been practicable to remove and inspect. Municipal and other 
records should show any excavation that has been performed since 
tubes were laid for the purpose of installing new piping, conduits, 
subsequent, structures, etc., near said post-office tubes, and said 
records have been consulted. The records of the post office show 
what troubles have been due to stoppages and the cause and duration 
of same; and, finally, the light of experience and common sense aids 
in determining tube condition. For example, if one were buying a 
going waterworks plant and found on investigation that water takers 
make no complaints of insufficient quantities; that there appeared 
to be no known derangements from leakage; and that there was a 
reasonably close agreement between the water pumped and the esti¬ 
mated or recorded water used, one could fairly assume that the under¬ 
ground-service system of such a water company was tight and in good 
condition, especially if age and character of construction were known; 
and as concerns the pneumatic mail tubes these data we have. 

It seems that having used the sources of information available, we 
must largely assume the condition of the said tubes, and in New York 
City we may fairly believe said condition to be good. 

Given freedom from electrolytic action, chemical attack, or me¬ 
chanical injury, we know that cast-iron pipe, with the original 
“skin” unbroken on the outside, and properly coated, lasts many 
years. Owing to the presence of more or less moisture, quantities 
of vaseline and grease used for lubrication, and the fact that the 
bearing is on the packing rings of the pneumatic carriers, the normal 
internal wear in the tubes is not great. Where we have examined 
the New York tubes, wear has been slight. 


252 


PNEUMATIC-TUBE SYSTEM. 


It is, of course, true that where many mains have been laid in soil 
saturated with salt water, or been exposed to the possibility of set¬ 
tlement, electrolysis, or even undue internal wear, consideration 
should be given to attendant circumstances. But beyond what I 
have outlined for tube inspection, I do not feel that we can profitably 
go, even if a large sum of money and an indefinite period of time 
were at our disposal. 

There is transmitted herewith a detailed description, marked 
“Exhibit D, N. Y. & B. No. 4,” of an examination made of the tube 
sections and bends which were removed from Washington Street, 
Brooklyn, and South William Street, New York, on Sunday, Feb¬ 
ruary 16, 1913, previous arrangements having been made and exca¬ 
vations performed. 

The sections removed in Brooklyn were from a location where 
some electrolytic action on the tubes might be anticipated to have 
existed, and some evidence thereof was found. It will be noted this 
electro]vtic action was confined to one length. The loss from external 
rusting was found not material; from internal wear, noticeable rather 
than measurable. The deepest pit due to electrolytic action was 
drilled and found to have a depth of 0.16 inch below the original pipe 
surface. 

The solid metal between bottom of pit and interior bore of pipe 
measured 0.415 inch, which leaves ample metal for continued use of 
this section of pipe for, say, 15 years. These tubes were installed 
in 1898. 

The tube sections removed from the South William Street (Station 
P) line, the oldest in New York, were installed in 1898. The detailed 
description of condition is found in the inclosure referred to. It may 
be summed up by stating that the internal wear was observable 
rather than measurable, and that the loss of the cast iron by external 
corrosion is very slight. The cast-iron bends that were removed for 
examination were installed in 1907. They show very slight external 
corrosion and maximum internal wear of not over one thirty-second 
inch. 

A special report marked “Exhibit E, N. Y. & B. No. 5,” on the 
general going condition of the system in New York, from one of my 
associates, Mr. David F. Atkins, inspector of mechanical equipment, 
Office of Supervising Architect, Treasury Department, member 
American Society of Mechanical Engineers, member American Insti¬ 
tute of Electrical Engineers, is inclosed herewith. My own observa¬ 
tions and knowledge of the New York system confirm Mr. Atkins’s 
report. 

SECOND. PROBABLE COST OF CONSTRUCTION. 

This is a matter which, particularly in New York, is exceedingly 
difficult to determine. It is only within, say, the past five years 
that standard types of apparatus have been adopted. 

Undoubtedly large sums of money have been expended in experi¬ 
ments that were included and charged to early construction. This 
applies to such features as tubes, bends, transmitters, receivers, 
compressors, carriers, time locks, and numerous minor details. Many 
forms of carriers, of terminal and receiving apparatus, have been 
made and tested, and many types of tube fittings more or less experi¬ 
mental, and finally found unsuitable, have been sold as junk. 


PNEUMATIC-TUBE SYSTEM. 


253 


The securing of franchises and the carrying on of street work in a 
city like New York involve many expenses that probably do not 
directly appear as items in the books of the building or holding 
company. The following extract from the brief on behalf of the 
relators-respondents in the well-known case of the People of the State 
of New York on the relation of Third Avenue Railroad Co. against 
the Public Service Commission for the First District of New York, 
might well apply to a great deal of the pneumatic-tube construction 
in New York and other cities: 

The electrification of the Third Avenue system must have been extremely difficult 
and costly. The work involved was difficult subsurface construction on the most 
congested avenue in the city, if not in the whole country, and on one of the busiest of 
thoroughfares. There existed an elevated railroad on Third Avenue running over 
the tracks of the street railroad, and as is well known the avenues and streets of the 
city are honeycombed below the surface with all manner of pipes and conduits. 
Hence it is plain that a cost that would be excessive in Syracuse or Worcester or Nash¬ 
ville and their suburbs, to which the experience of the expert of the public service 
commission was confined (pp. 909, 914), might be entirely reasonable and unavoid¬ 
able in the city of New York. During the course of this electrification and undoubt¬ 
edly because of its great cost, the company became insolvent in February, 1900, and 
a receiver of its property and franchises was thereupon appointed by the United States 
court. 

What was the fate of the Third Avenue Railroad Co. was, as nearly 
as I can determine from the records, akin to the fate of the predeces¬ 
sors of the New York Pneumatic Service Co. 

According to the New York Pneumatic Service Co.’s reports, their 
cost of construction to March 31, 1912, for New York and Brooklyn, 
was as follows: 

Miles, 26.5230. 

Total cost. $6, 527, 046. 45 

Cash cost. 5, 511, 645. 38 

Cost per mile: 

Total cost. 246, 090.00 

Cash cost. 207, 806. 00 

These costs include development and experiment, franchises, legal 
expenses, patents, interest, cost of obtaining capital, organization 
expenses, deficit during early years of operation, and loss by com¬ 
pulsory abandonment of lines incident to changes in location of 
post offices, substations, etc. A memorandum bearing on this 
matter of general expenses in the development and construction of 
tne pneumatic tubes was submitted to me under date of February 
24, 1913, by the chief engineer of the American Pneumatic Service 
Co., and this brief, marked “Exhibit F, N. Y. & B. No. 6,” is trans¬ 
mitted herewith. 

The report of the Post Office Department commission of 1909 gave 
the estimates of the chief engineer of the American Pneumatic Service 
Co. on construction costs per mile for New York and Brooklyn as 
$83,001; the post office commission themselves gave the estimated 
cost as $75,862, plus charge for patents and franchises. These esti¬ 
mates inferred reproduction as of 1908. 

Before expressing any definite opinion on the actual construction 
costs in New York I feel constrained to await further information, 
if it can be obtained, from the pneumatic company and from the 
auditors and accountants that have been employed by the commis¬ 
sion, because what can be termed the engineering and construction 
costs entering into this matter probably do not represent over 40 






254 


PNEUMATIC-TUBE SYSTEM. 


per cent of the total cash cost entered on the books of the company. 
However, in order that some estimate can be fairly made, under the 
heading “Probable operating cost under Government ownership’ 
(New York tube system, including Brooklyn lines), I have used both 
the claimed cash cost of the company for said lines as well as the 
American Audit Co.’s report of February 14. 1913. which gives the 
ledger cost of said lines as $3,244,648.30. 

I have not been able to obtain from the officials of the American 
Pneumatic Service Co. accurate cost statements concerning some of 
the apparatus originally purchased, built, or installed by the Tubular 
Dispatch Co., owners of the original New York system. This is 
illustrated by the inventory to which I have heretofore referred, 
marked “N. Y. & B., No. 1,” and the figures given in the tables of 
costs of nearly all the apparatus are merely estimates. See inclosed 
letter of American Pneumatic Service Co., dated March 1, 1913, 
marked ‘‘Exhibit G, N. Y. & B., No. 7.” 

THIRD. COST OF DUPLICATION OF SYSTEM. 

I estimate the probable cost of duplicating the present pneumatic 
tube system in New York and Brooklyn, including all power generat¬ 
ing and station apparatus, at $2,363,439. 

Including equipment, this would be at the average rate of $87,151 
per mile. This figure is based on detailed estimates of costs of tube, 
boring thereof, special fittings and their boring and grinding, trucking 
and delivery, trench work, including restoration of surfaces, etc., tube 
laying, inspecting and engineering, and terminal apparatus. There 
are street locations where cost would be much above the average 
and some where it would be less. 

For the receiving and dispatching apparatus and special bends and 
fittings I have used the prices given me by the chief engineer of the 
American Pneumatic Service Co., since they seem reasonable. Other 
costs have been independently investigated and obtained. The prices 
for compressors and blowers have been taken from those paid after 
competition bv the American Pneumatic Service Co. for their New 
York equipment, because said prices seemed to me fair and reason¬ 
able. They have been further checked by the prices paid by the 
Pneumatic Transit Co. at Philadelphia for similar apparatus, and 
commercially these prices seem fair, judging by present rates, though 
cash payments would probably reduce all apparatus costs. 

It is worth noting that these estimates, made independently of the 
cost of installing the Government-owned line between the United 
States customhouse and appraisers’ warehouse, New York, N. Y., 
check out with reference to the actual cost of line last named within 
about $100 per mile. 

VALUE OF PRESENT SYSTEM TO GOVERNMENT. 

The question of the value to the Government of the present sys¬ 
tems is a very complicated matter. In connection with it we have 
to consider its “value” to the Post Office Department. This, at 
the present time, seems beyond dispute; but it is a “value” that 
it is almost impossible to express in dollars and cents. It is the 


PNEUMATIC-TUBE SYSTEM. 


255 


same kind of value attached to our ability at the present time to 
go from New Y ork to San Francisco in four and one-half days; 
or to insure the receipt of a special-delivery letter in a great city 
within an hour after it has been pos.ted. 

A member of the commission suggested, on page 15, that we 
might consider one of the interstate commerce plans for arriving 
at the present actual physical valuation, namely, “by taking the 
cost of construction, the cost of reproduction, and the going value 
and making an average on the three.” Using this formula, we might 
sav that the actual physical valuation of the New York-Brooklyn 
system could be stated as follows, taking for the time being at least: 


First. The American Audit Co.’s ledger construction account, set forth 

in their Exhibit 1, report of Feb. 14, 1913. 

Second. Using my estimated probable cost of duplication (see p. 254 of 

this report). 

Third. The going value, i. e., the sum capitalized that would produce 
the present net revenue of this company received from the rental of 
the New York-Brooklyn system. This net profit over all expense 
and interest, etc., charges for their fiscal year ending Mar. 31, 1912, is 
given as $62,073.52, and if we capitalized this at 4 per cent, it would 
make a going principal for the tube system of. 


$3, 244, 648. 30 
2, 363,439. 00 


1, 551, 838. 00 


The aggregate of these amounts equals. 7,159, 925. 30 

Divided by 3 we would get, as the value, on this basis, of this system. 2, 386, 641. 76 

This result would probably be fiercely disputed by the tube com¬ 
pany, who would contend that the American Audit Co.’s value took 
no account of the parent company’s charge for profit and loss or of 
organization expenses, including the expenses incurred in obtaining 
capital. They would probably also object to item 2, holding that the 
plant should be capitalized as a going concern on the gross income 
less operating expenses instead of as given above—i. e., that they 
should be credited with the sum they pay out as interest. 

It is perhaps fair to consider, on the basis of the foregoing formula, 
the result of a computation on the same basis if we capitalize the 
New York tube company as a going concern on the gross income less 
operating expenses. On this basis the formula would work out as 
follows: 


First. The American Audit Co.’s ledger account... $3, 244, 648. 30 

Second. Using my estimated probable cost of duplication (see p. 254, 
this report). -------- . 2, 363,439. 00 


Third. The going value, as the tube company claims it—i. e., the sum 
capitalized that would produce the present net revenue of said com¬ 
pany received from the rental of the New York and Brooklyn system, 
deducting the operating expenses only, given by the American Audit 
Co. (see schedule 9) as $234,565. Deducting this amount from the 
rental received from the United States Government for the year end¬ 
ing Mar. 31,1912—i. e., $449,928—the balance would be $215,363; and 
if we capitalize this balance at 4 per cent, it would make a going prin¬ 
cipal for system named of.- 5, 384, 075. 00 


10, 992,162. 30 

Divided by 3, on this basis, we would get the value of the New York- 

Brooklyn system as. 3, 664, 054.10 

Note. —If taxes and insurance were considered as a part of the operating expense, 
they would add $11,922.32 to said expense, and the going principal would be reduced 
proportionately; but neither taxes nor insurance is a Government charge. 












256 


PNEUMATIC-TUBE SYSTEM. 


If we accepted, in lieu of the American Audit Co/s figure named, 
the pneumatic-tube company’s statement of cash cost, the formula 
would work out as follows: 


Tube company’s stated cash cost..... $5, 511, 645. 38 

My estimated probable cost of duplication. 2, 363, 439. 00 

The going value, i. e., the sum capitalized at 4 per cent that would 
produce the present net revenue of this company, received from the 
rental of the New York-Brooklyn system. 1, 551, 838. 00 


company for reasons stated in first computation.) 

The aggregate of these sums amounts to.-.. 9, 426, 922. 38 

Divided by 3, we would get, as the value on this basis, of this system. 3,142, 307. 46 


It will, I think, be clear to the commission, and to those others in¬ 
terested in this matter, that the statements of the president of 1 ale 
University, made before the Committee on Interstate and Foreign 
Commerce, in the House of Representatives, on House bill 12811, 
February 15—16, 1912, would apply in this case. He said: 

Speaking broadly, therefore, I should say that the attempt to ascertain the cost of 
property in the past with any degree of completeness or accuracy was impracticable. 

To determine what we should recommend as a fair pa}mient to the 
American Pneumatic Service Co. for its New York-Brooklyn prop¬ 
erties is a question that must be settled by equity and public policy, 
as well as by engineering experience and a knowledge of the systems, 
and I would request that I be permitted to discuss this particular 
detail further with the commission. 

FOURTH. PROBABLE OPERATING COST UNDER GOVERNMENT OWNER¬ 
SHIP. 

Consulting the proof sheets of the American Audit Co.’s report to 
the commission, of February 14, 1913, received by me February 21, 
1913, and using schedule 9 of said report, it is stated that the oper¬ 
ating cost of the New York Pneumatic Service Co. for their last full 
fiscal year is as given in the left-hand column hereinunder. My 
estimated cost of operation is given in the corresponding right-hand 
column. 



Tube com¬ 
pany’s 
operating 
expenses. 

Govern¬ 

ment’s 

estimated 

operating 

expenses. 

General expenses. 

$23,484.66 
103,106.98 
107,973.36 

$9,000.00 

119,000.00 

104,000.00 

Operating expenses, including repairs. 

Power. 

Total. 

234,565.00 

232,000.00 



In this case, as in similar instances in the other large cities con¬ 
cerned, the Government labor operating charges are estimated as 
larger than the tube company’s by, say, 25 per cent, because the 
Government properly pays a minimum of, say, $2 a day to the class 
of help that would be employed as operators, works them, normally, 
but 8 hours daily, and allows a vacation period usually of two weeks, 
also some sick leave. I have, therefore, given due weight to these 



















PNEUMATIC-TUBE SYSTEM. 


257 


conditions in increasing the labor items in operating costs, because 
the pneumatic tube companies pay a number of their operators less 
than $2 and normally require 10 hours’ service. 

For the moment disregarding the elements of interest and depre¬ 
ciation, if the Government purchased this tube system, the present 
and estimated costs of the postal pneumatic service in New York 
would be as follows: 


Present cost: Annual rental now paid on 26.5230 miles. $449, 928 

Cost of Government operation, including repairs. 232, 000 

Annual difference in favor of Government ownership. 217, 928 


Obviously, before we can compute the interest account, if that 
factor is to be given weight, the exact purchase price would have to 
be determined, something we are not in a position at present to do. 

If, for the sake of argument and in order to get some basis of com¬ 
parison, we fixed the purchase price of the systems on the principle 
adopted by the Public Service Commission of the First District, New 
York, in considering the Coney Island fare case of the Coney Island 
& Brooklyn Railroad Co., which placed the ratio of intangible prop¬ 
erty to tangible property as, say, 9 per cent, and if we accepted, as 
governing, Exhibit K of the audit company’s report to the com¬ 
mission of February 14, 1913, as showing the construction charges 
to December 31, 1912, for the New York and Brooklyn tubes, the 
interest account would be as follows: 

Ledger cost of construction of New York and Brooklyn tube system.. 1 $3, 244, 648. 30 


Intangible property, at 9 per cent. 292, 018. 34 


2 3, 536, 666. 64 

Interest on same, at 2.5 per cent. 88, 416. 00 

If we deduct from the difference in favor of Government ownership 
interest in amount above stated, i. e., $88,416, the profit to the 

Government from ownership would amount to. 129, 512. 00 

If, for the sake of argument, we assume we paid the cash cost claimed 


by the tube company for this system, i. e., $5,511,645, the interest 
thereon, at 2b per cent, would amount to $137,791; and even on 
this basis the apparent profit to the Government by its ownership 
and operation would amount to, annually, above operating cost- 80,137. 00 

I am assuming that probably there would not be paid, at the most, 
any larger sum than said cash cost claimed by the tube company for 
the system in question, and therefore it would appear that, say, $80,1.37 
would be the minimum apparent profit to the Government by its 
ownership and operation of these tubes. This would be virtually a 
dividend on the investment made after interest at 2 J per cent, repairs, 
maintenance, and operation had all been paid for. 

For further detailed data as regards operating costs, see Exhibit A, 
American Audit Co. report, February 15, column New York. 

DEPRECIATION. 

As regards the element < f depreciation, I am ne t elisor s< d t give 
it much weight as a pra ti al question in (cnnecti n with the pneu¬ 
matic tube companies’ plants in the various itics. 


1 This amount does not consider the parent company’s charge for profit and loss. To the best of my 

knowledge this has never been stated. , , 

2 This amount is very nearly $2,000,000 less than the American Pneumatic Service Co.’s claimed cash 
cost of the New York and Brooklyn systems. 


78419—13-17 















258 


PNEUMATIC-TUBE SYSTEM. 


A thorough inspection has shown them generally to be in very 
good condition. 

The tube lines beneath the streets, as heretofore stated, are, gen¬ 
erally speaking, in practically as good operating condition as when 
laid; in fact, as regards the 10-inch lines in Boston, practically in 
better condition. 

It has been well said by an eminent engineer, in the Journal of the 
American Society of Mechanical Engineers for February, 1913, that— 

There is a number of kinds of machines which have been but little improved upon 
during the past period of years, and on account of this slow advance in the state of the 
art the age alone is of comparatively small importance. Again, the question as to 
how carefully or intelligently the repairs have been kept up is one that must be con¬ 
sidered in determining the present value. 

One of the principles of valuing property should be a careful detail investigation 
of each part or portion of the property in order to determine its actual physical 
condition and not to be guided too much by the one factor, ‘‘age.” 

In this case I am also disposed to share the opinions set forth by 
another eminent engineer in the Annals of the American Academy 
of Political and Social Science publication of January, 1911, where 
it is stated that— 

The public is not interested in the amount of depreciation of physical property if 
it is well maintained in condition to give good service. There would be an economic 
waste if such depreciation were repaired. 

It certainly is fair to say that the physical properties of the New 
York tube company have been well maintained and are in condition 
to give good service. 

PHILADELPHIA TUBE SYSTEM. 

Owner: The Pneumatic Transit Co. 

FIRST. PHYSICAL DESCRIPTION. 

Installations made from 1893 to 1910. 

Routes shown by inclosed map, marked “Exhibit H, plan showing 
routes of pneumatic-tube lines in the city of Philadelphia, Pneumatic 
Transit Co., Philadelphia, Pa,, August 20, 1908.” 

Length of tubing in use, 9.999 miles. 

Note. —For practical purposes in computations, etc., I have regarded this svstem 
as 10 miles in length. 


Street vaults. 177 

Standpipes. 0 

Sets of bends. 98 

Special fittings, drip parts.... 57 

Number of carriers (6 inches, 100; 8 inches, 1,100), total. 1 , 200 


Reference is had to Exhibit I, inventory, etc., owned by the Pneu¬ 
matic Transit Co., February, 1913, from which the following is sum¬ 
marized : 


STATION AND POWER EQUIPMENT. 


Central post office: 

Terminals— 

4 8 -inch gravity transmitters, with time locks. 
2 8 -inch double-decked receivers. 

1 6 -inch gravity transmitter. 

1 6 -inch receiver. 

1 gauge board and 2 steel racks. 







PNEUMATIC-TUBE SYSTEM. 


259 


Central post office—Continued. 

Power plant— 

3 Ingersoll-Rand duplex reciprocating compressors, 1906. 
3 Ingersoll-Rand duplex reciprocating compressors, 1908. 
1 Westinghouse 50-horsepower motor. 

1 Westinghouse 40-horsepower motor. 

1 Westinghouse 30-horsepower motor. 

1 Westinghouse 16.62-horsepower motor. 

1 Westinghouse 28.48-horsepower motor. 

1 Westinghouse 23.17-horsepower motor. 

12 panel boards. 

Station S: 

Terminals— 

2 8-inch gravity transmitters, with time locks. 

1 8-incli double-decked receiver. 

1 gauge board, and carrier rack. 

Power plant— 

3 Ingersoll-Rand duplex reciprocating compressors, 1906. 

2 Westinghouse 40-horsepower motors. 

1 Westinghouse 50-horsepower motor. 

6 panel boards. 

Station O: 

Terminals— 

2 8-inch gravity transmitters, 1906, 1910. 

1 8-incli double-decked reciprocating receiver. 

1 gauge board, 1 carrier rack. 

Power plant— 

2 Ingersoll-Rand duplex reciprocating receivers, 1906. 

1 Connersville blower, 1910. 

1 Westinghouse 40-horsepower motor. 

1 Westinghouse 50-horsepower motor. 

1 General Electric 35-horsepower motor. 

6 panel boards. 

Station Fairhill: 

Terminals— 

2 8-inch gravity transmitters, 1910. 

1 8-inch double-decked receiver, 1910. 

1 gauge board, 1 steel carrier rack. 

Power plant— 

3 Connersville blowers, 1910. 

1 General Electric 50-horsepower motor. 

1 General Electric 35-horsepower motor. 

1 General Electric 25-horsepower motor. 

6 panel boards. 

Station North Philadelphia: 

Terminals— 

1 8-inch cradle transmitter, with time lock, 1910. 

1 8-inch centrifugal receiver, 1910. 

1 gauge board, 1 carrier rack. 

Power plant— 

2 Connersville blowers, 1910. 

1 General Electric 50-horsepower motor. 

1 General Electric 25-horsepower motor. 

4 panel boards. 

Reading Terminal Station: 

Terminals—- 

1 8-inch,gravity transmitter, 1909. 

J 8-inch tilting tube closed receiver, 1909. 

1 carrier rack. 

Penn Square or Broad Street Station: 

Terminals—- 

2 8-inch gravity transmitters, 1910. 

1 8-inch double-decked receiver, 1910. 

1 gauge board. 

1 carrier rack. 


260 


PNEUMATIC-TUBE SYSTEM. 


Penn Square or Broad Street Station—Continued. 

Power plant— 

3 Ingersoll-Rand duplex reciprocating compressors, 1910. 

1 Westinghouse 50-liorsepower motor. 

1 Westinghouse 35-liorsepower motor. 

1 Westinghouse 23-horsepower motor. 

6 panel boards. 

Station J: 

Terminals— 

2 8 -incli gravity transmitters, 1908. 

1 8 -inch double-decked centrifugal receiver, 1908. * 

1 gauge board. 

1 steel carrier rack. 

Power plant— 

3 Ingersoll-Rand duplex reciprocating compressors, 903 
1 Westinghouse 50-liorsepower motor. 

1 Westinghouse 35-horsepower motor. 

1 Westinghouse 21 . 6 -horsepower motor. 

6 panel boards. 

Station C: 

Terminals— 

1 8 -inch gravity transmitter, 1908. 

1 8 -inch centrifugal transmitter, 1908. 

1 gauge board. 

1 steel carrier rack. 

Power plant— 

2 Ingersoll-Rand duplex compressors, 1908. 

1 Westinghouse 50-liorsepower motor. 

1 Westinghouse 21 . 6 -horsepower motor. 

4 panel boards. 

Southwark Station: 

Terminals— 

2 8 -inch gravity transmitters, 1908. 

1 8 -incli double-decked centrifugal receiver, 1908. 

1 gauge board. 

1 steel carrier rack. 

Power plant— 

3 Ingersoll-Rand duplex reciprocating compressors, 1908. 

1 Westinghouse 50-horsepower motor. 

1 Westinghouse 24.5-horsepower motor. 

1 Westinghouse 21 . 6 -horsepower motor. 

6 panel boards. 

Station D: 

Terminals— 

1 8 -inch gravity transmitter, 1908. 

1 8 -inch centrifugal receiver, 1908. 

1 gauge board. 

1 steel rack. 

Power plant— 

2 Ingersoll-Rand duplex reciprocating compressors, 1908. 

1 Westinghouse 50-horsepower motor. 

1 Westinghouse 21 . 6 -horsepower motor. 

4 panel boards. 

Bourse Station: 

Terminals— 

1 6 -inch cradle transmitter, 1908. 

1 6 -inch tilting tube closed receiver, 1893. 

1 wooden carrier rack. 

Note.— Necessary air piping, steam piping, electric wiring, tools, lockers, acces¬ 
sories etc., go with each station. 

STATION, SHOP, AND STREET EQUIPMENT. 

This is as per the very elaborate inventory submitted by the com¬ 
pany and marked “Phil. No. 1.” 

Said inventory comprises a property list, with a statement as to 
the condition of the articles enumerated, and in most cases a state- 


PNEUMATIC-TUBE SYSTEM. 261 

merit of the age, and also the company’s statement of the cost so far 
as same can be determined. 

Subject to the notations in said inventory, the going condition of 
the plant and apparatus is very good. This is illustrated by the 
report herewith transmitted, marked “ Exhibit J, Phil. No. 2,” com¬ 
piled by the office of the postmaster at Philadelphia, of pneumatic- 
tube stoppages during the calendar year of 1912. Said report gives 
the dates of all stoppages, the stations affected, the duration of 
stoppages and causes thereof. 

There is later comment on the matter of stoppages in the various 
systems. There were but 43 of such interruptions in the Philadel¬ 
phia system during the calendar year of 1912. This is an average of 
but 4.3 stoppages per mile per year, and, as in the case of most of 
the other cities, shows good mechanical condition and intelligent 
operation. 

The mechanical condition of the system in Philadelphia has under¬ 
gone a very thorough inspection at the hands of Mr. George E. Reid, 
mechanical engineer, of the Supervising Architect’s Office, United 
States Treasury Department, Washington, D. C., who served with 
me for this purpose. 

Under date of February 26, 1913, Mr. Reid reports, when for¬ 
warding the checked inventory of the company, that— 

Inspection shows the equipment to be in excellent condition. The average time 
in service is five years; while the average length of service of the tubes is seven 
years. 

Each of the stations having compressors is equipped with a spare compressor and 
motor with the air piping so arranged that the spare unit can be used in lieu of any 
other unit in a station that may be temporarily out of service. The spare unit is 
equipped with a more powerful motor than the others for the purpose of increasing 
the line pressure to force out a blocked carrier. 

As in the other cities, particular consideration has been given the 
matter of the probable condition of the underground tubes them¬ 
selves, notably with reference to the older lines. 

My views on the general subject of the tubes have been heretofore 
fully set forth in that portion of the report which treats of New 
York and Brooklyn. 

I have examined several sections of tube and several bends that 
have been in former service in Philadelphia and found them exter¬ 
nally and internally in good condition, showing only very slight 
evidences of wear. In this connection Mr. Reid reports: 

There were also at the store yard several lengths of 8-inch tubes removed from some 
of the lines for various reasons; and in the lot was a length with the date 1898 cast 
on the outside, said to have been put down in that year in the Broad Street (Penn 
Square) line, and taken up in 1910 on account of changes in line location; and after 
12 years of service in one of the busiest lines of the system, the wear, as tested by 
the standard gauges used for boring, is inappreciable, some of the tool marks still 
being visible. 

The exterior coating is apparently intact and as good as when applied. 

Another length in the ground six years on another line showed the same charac¬ 
teristics. 

In no case are the underground lines in proximity to chemical works or other 
factories whence seepage could endanger the tubes. 


262 


PNEUMATIC-TUBE SYSTEM. 


SECOND. PROBABLE COST OF CONSTRUCTION. 

This is a matter which, as in the case of New York, is particularly 
difficult to determine. 

In Philadelphia, also, very large sums of money have doubtless been 
expended in experiments that were included in and charged to early 
construction, and here also the securing of franchises and the carry¬ 
ing on of street work doubtless involved many expenses that probably 
have not appeared as items in the books of the building or holding 
company. 

The charge to construction account on the books of the Pneumatic 
Transit Co. is reported by the American Audit Co., under date of 
February 14, 1913, in the proofs received by me February 21, 1913, 
to be approximately $1,123,000. 

, The audit company further report that the actual direct cost was 
approximately $643,000; said audit company stating further that 
these figures do not include any charges for interest, franchises, etc. 

Under the conditions set forth in the audit company's report I 
have not been able in the time available to reach a definite conclusion 
as to what the actual construction costs in Philadelphia have been. 

I have referred in my report on New York to a memorandum 
bearing on this matter of general expenses in the development and 
construction of the pneumatic tubes which was submitted to me 
under date of February 24, 1913, by the chief engineer of the American 
Pneumatic Service Co. and which is inclosed for consideration. 

This matter of construction costs, here and elsewhere, I request 
leave to discuss personally with the commission. 

It seems here proper to refer to the following excerpt from the 
audit company's report of February 14, 1913: 

In the engineer’s estimate, which we are submitting herewith as Exhibit D, it will 
be noted that there are charges for “Station equipment” for Broad Street Station and 
Stations J and 0 amounting to about $60,000, as against a charge of approximately 
$23,000 for “Station equipment” as shown in Exhibit C (Fairhill and North Phila¬ 
delphia Station). Our conclusions are that only an appraisal of the physical property 
will give you any authentic information as to the actual cost of this construction. 

Naturally I made some particular investigation of this question 
and, broadly speaking, the answer is that because of operating condi¬ 
tions the power plants in Broad Street, Station J, and Station C, are 
of greater capacity and more expensive type than the mechanism 
required for the Fairhill and North Philadelphia stations. 

In Broad Street, for example, there are installed three Ingersoll- 
Band duplex reciprocating air compressors that in 1910 cost $9,300. 

At Fairhill there are installed three Connersville blowers that cost 
$4,313. 

The motor equipment in Broad Street consists of one Westinghouse 
direct-current 50-horsepower motor, one similar 35 horsepower and 
one similar 23-liorsepower motor. The aggregate cost of these three 
motors was $4,540. 

In Fairhill the motor equipment consists of one 50-liorsepower 
General Electric alternating-current motor, one motor of the same 
type of 35 horsepower, and one motor of the same type of 25 horse¬ 
power. The aggregate cost of these three motors was but $1,748. 

The reason given by the company's consulting engineer for the 
more expensive installation at Broad Street and at Stations C and J is 


PNEUMATIC-TUBE SYSTEM. 


263 


that at the time these installations were made, as regards motors, it 
was impracticable for them to obtain alternating current at said sta¬ 
tions, and that therefore their apparatus had to be adapted for the 
use of direct current; that as regards the compressors for the stations 
named, they were ordered under a contract, that had been in force 
for some two or three years prior to 1910, with the manufacturers of 
the Ingersoll-Rand compressors, and at the time this contract was 
entered into the suitability of the blowers for pneumatic-tube service 
had not been determined. 

The company further holds that the direct-current motors, though 
more expensive, are better adapted for pneumatic tube compressor 
work, because of their lower speeds and the ability to make a direct 
connection to the blower or compressor, whereas with the alternating- 
current motors their higher rotative speeds make it necessary to use 
the Morse chain or some other similar type of drive. This the com¬ 
panies regard as somewhat objectionable, a prejudice that I person¬ 
ally do not share. 

Going into somewhat further detail in this matter, it is possible 
that it could have been found that the alternating-current motors 
could have been obtained at a slower speed and might have beei^ 
fitted for direct connection. However, this would not have lessened 
the original cost, and this detail is one of the many score that can 
come up in the case of any large mechanical or electrical installation 
and be the subject of divers opinions. 

THIKD. COST OF DUPLICATION OF SYSTEM. 

I estimate the probable cost of duplicating the present postal pneu¬ 
matic-tube system in Philadelphia, including all power-generating 
and station apparatus, at, say, $724,000: 

Of the 10 miles of double tube comprised in this system, I consider that, 

say, 7 miles represent construction that would probably cost, including 


station equipment, $80,500 a mile, making an aggregate of. $563, 500 

Of these 10 miles of tube, I also consider that, say,. 3 miles represent con¬ 
struction that would probably cost, including station equipment, $53,500 
a mile, making an aggregate of. 160, 500 

Total estimated cost of duplication of system. 724, 000 

This would give an average cost per mile of. 72, 400 


This estimate is largely based on the actual cost of construction 
work performed by this company since 1907, and is, I think, con¬ 
servative, though doubtless, with their present lights, they would 
agree with me that the cost of some of their station equipment might 
be lessened, as compared with the expense incurred under apparatus 
contracts made, let us say, in 1907. 

In the report compiled in 1908 by the post office commission, it is 
stated that the Pneumatic Transit Cods construction costs repre¬ 
sented an average of $73,292 per mile for Philadelphia. The com¬ 
mittee estimated thq cost for reproduction as $64,647 per mile, plus 
charge for patents and franchises. These estimates were, as in the 
case of other cities reported on, based on costs of labor and material 
in 1908. There are, of course, increases in these items since that 

time. 







264 


PNEUMATIC-TUBE SYSTEM. 


VALUE OF PRESENT SYSTEM TO GOVERNMENT. 


As in the case of New York, the question of the value to the Gov¬ 
ernment of the present system is a very complicated matter. There 
is that “value” to the Post Office Department which we can not 
well express financially; but financially we may consider what the 
value would be to the Government even though without further dis¬ 
cussion and most careful consideration that value can not now be 
exactly determined. 

If we use the interstate-commerce plan, referred to on page 255 of 
this report for arriving at the present actual physical valuation, 
namely, “by taking the cost of construction, the cost of reproduc¬ 
tion, and the going value and making an average on the three,” we 
might say that the actual physical valuation of the Philadelphia 
system could be stated as follows, taking for the time being at least: 


First. The American Audit Co.’s statement of charged construction ac¬ 
count, dated Feb. 14, 1913, page 214. 

Second. Using my estimated probable cost of duplication (see p. 263 of 

this report).*. 

Third. The going value, i. e., the sum capitalized that would produce 
* the present net revenue of this company received from the rental of 
the Philadelphia system. This net profit over all expenses and interest 
charges for the calendar year of 1912 is given as $73,150, and if we 
capitalized this at 4 per cent, it would make a going principal for the 
tube system of. 


$1,123, 000 
724, 000 


1, 828, 750 


The aggregate of these three sums. 3, 675, 750 

Divided by 3 we would get as the value on this basis of this system. 1, 225, 250 


This result would probably be strongly objected to by the tube 
company, who would contend that the values I have given above 
took no account of the parent company’s charge for profit and loss or 
of the intangible assets, concerning which I transmit herewith a brief 
received by me March 3, 1913, which is transmitted for the consider¬ 
ation of the commission. It is marked “Exhibit K, Phil. No. 3.” 

Moreover, they probably would raise the same objection that I 
assume the American Pneumatic Service Co. will to my form of item 
No. 2, holding that the plant should be (apitalized as a"gcing concern 
on the gross income less operating expenses, instead cf the form here¬ 
tofore used; i. e., that they should be credited with the sum they pay 
out as interest. Hence it is perhaps fair, at least for the sake of 
argument, as we have in the case of the New York system, to con¬ 
sider a computation based on the following factors: 

First. The Pneumatic Transit Co.’s claim set forth in their brief 
received Mar. 3, 1913, to the effect that the total value of all the 
company’s property, including both tangible and intangible prop¬ 


erty, was... $2, 006, 575.14 

Second. My estimated probable cost of duplication. 724, 000. 00 


Third. The going value, as probably the tube company would claim 
it, i. e., the sum capitalized at 4 per cent that would produce the 
present net revenue of this company received from the rental of the 
Philadelphia system, deducting the operating expenses given by 
the American Audit Co. in Exhibit A of their report of Feb. 14, 
1913. Deducting said operating expenses, $78,438.44, from the said 
rental, $169,998.30, there would be left a gross operating profit of 
$91,559.86, and if we capitalized this balance at 4 per cent it would 


make a going principal for the system named of. 2, 288, 996. 50 

Aggregate of these sums... 5, 019, 571. 64 


Divided by 3, we would get as the value on this basis of this system.. 1, 673,190. 54 
(See p. 255 for notes on taxes and insurance.) 













PNEUMATIC-TUBE SYSTEM. 


265 


It is possible, of course, to somewhat vary the foregoing computa¬ 
tions, but until we can determine exactly what value is to be given 
intangible assets and the profit and loss account, further theoretical 
calculations in this case would not seem worth while; and, as I have 
before stated, it would seem that matters of equity and public policy 
must receive consideration, as well as the deductions to be obtained 
from engineering experience and a knowledge of the systems. Hence 
my request for permission to discuss this particular detail further with 
the commission. 

FOURTH. PROBABLE OPERATING COST UNDER GOVERNMENT OWNER¬ 
SHIP. 

Consulting the proof sheets of the American Audit Co.’s report to 
the commission, of February 14, 1913, and using Exhibit B of said 
report, the operating cost of the Philadelphia system for the calendar 
year of 1912 is given as per the details in the left-hand column here- 
munder. My estimated cost of operation is given in the correspond¬ 
ing right-hand column. 



Tube 

company’s 

operating 

expenses. 

Government’s 

estimated 

operating 

expenses. 

t 

General expenses’. 

$5,386.89 
33,858.53 
139,193.02 

$1,200.00 
43,300.00 
2 39,193.02 

Operating expenses, including repairs. 

Power. 

Total. 

78,438. 44 

83,693.02 



1 This amount is for electricity purchased. 

2 This amount includes a charge for power regulator royalties. I am investigating this matter to see if 
the Government would have to pay it. (Amount $7,957.72.) 


It is estimated that labor under Government operation would in¬ 
volve higher costs because of shorter hours, sick leave, vacation 
period, and restrictions in the securing of help imposed by civil-service 
regulations. 

Disregarding interest on cost price, and depreciation, the present 
and estimated cost of the Philadelphia tube service are: 


Present cost: Annual rental on 9.999 miles. $169, 998. 30 

Cost of Government operation, including repairs. 83, 693. 02 

Net difference in favor of Government ownership. 86, 305. 28 


If the purchase price is fixed on the principle adopted by the 
Public Service Commission of the First District of New York (see p. 
253 of this report), the investment account would be as follows: 


Ledger cost of construction. $1,123, 000. 00 

Intangible property, 9 per cent. 101, 070. 00 

1, 224, 070. 00 

Interest on same, at 2.5 per cent. 30, 601. 75 

1, 254, 671. 75 


If we deduct the above interest, $30,601.75, from the net difference 
between present rental and estimated Government operating cost, 
$86,305.28, we have a net saving by Government ownership of 
$55,703.53. 





























266 


PNEUMATIC-TUBE SYSTEM. 


If we take the value arrived at hereinbefore (p. 264 of this report)-$1, 673,190. 54 


Intangible property, 9 per cent. 150, 587.15 

1, 823, 777. 69 

Interest at 2.5 per cent. 45, 594. 44 

This gives as the aggregate. 1, 869, 372.13 


The net saving by Government ownership would be $41,700.84, 
which would cover all repairs and depreciation and leave a consider¬ 
able sum for improvements or extensions annually. 

The writer desires to amplify these statements before the commis¬ 
sion if opportunity permits. 

DEPRECIATION. 

Remarks made in connection with the New York and Brooklyn 
lines apply also to the Philadelphia system. I do not regard depre¬ 
ciation as a factor worth consideration, as the inspection of appa¬ 
ratus indicates that this element is insignificant, provided always 
repairs and maintenance are kept up. 

CHICAGO PNEUMATIC-TUBE SYSTEM. 

Owner: Chicago Postal Pneumatic Tube Co. 

FIRST. PHYSICAL DESCRIPTION. 

Installations made from 1903 to date. 

Routes shown by inclosed map, Exhibit L, marked “Map of portion 
of Chicago, Ill., showing route for pneumatic mail service, submitted 
by Chicago Postal Pneumatic Tube Co., Chicago, 1908. 

Length of tubing in use, 9.6017 single, or 19.2034 double miles. 

Street vaults, 80. 

Bends, 115 pairs, i. e., 231 sets. 

Closures, 29 ; drips, 79; Dutchman, 1. 

Number of carriers, 450 per set; total, 975. 

Reference is had to Exhibit M, inventory Chicago Postal Pneu¬ 
matic, Tube Co., February 27, 1913, from which the following is 
summarized: 


STATION AND POWER EQUIPMENT. 


General post office: 

Terminals— 

3 sluice-gate open receivers, Nos. 227, 239, 243. 

3 gravity transmitters, Nos. 226, 238, 242. 

1 motor-driven time lock, No. 288. 

Power plant— 

1 75-liorsepower Laidlaw Dunn Gordon duplex steam compressor, No. 272. 

3 75-horsepower Rand Drill Co. duplex steam compressors, Nos. 269, 270, 271. 
1 ventilating engine, No. 268. 

1 panel board. 

3 receiver tanks. 

Kinzie Street Station: 

Terminals— 

1 revolving-valve closed receiver, No. 241. 

1 gravity transmitter, No. 240. 







PNEUMATIC-TUBE SYSTEM. 


267 


La Salle Street Station: 

Terminals—- 

2 sluice-gate closed receivers, Nos. 229, 237. 

2 gravity transmitters, Nos. 228, 236. 

1 motor time lock, No. 289. 

Station U: 

Terminals— 

2 revolving-valve closed receivers, Nos. 231, 235. 

2 gravity transmitters, Nos. 230, 234. 

1 motor time lock, No. 285. 

Canal Street Station: 

Terminals— 

1 transmitter, No. 232. 

1 revolving-valve open receiver, No. 233. 

1 motor time lock, No. 286. 

Power plant— 

1 50-horsepower direct-connected motor-driven Connersville blower, No. 266. 

1 75-horsepower direct-connected motor-driven Laidlaw Dunn Gordon com¬ 
pressor, No. 265. 

2 switch panels, Nos. 267, 305. 

1 receiver tank, No. 264. 

Illinois Central Station: 

Terminals— 

2 sluice-gate closed receivers, Nos. 245, 255. 

2 gravity transmitters, Nos. 244, 254. 

1 motor-driven time lock, No. 287. 

Twentieth Street Station: 

Terminals— 

1 sluice-gate closed receiver, No. 257. 

1 gravity transmitter, No. 256. 

Armour Station: 

Terminals— 

2 revolving-valve open receivers, Nos. 249, 253. 

2 gravity transmitters, Nos. 248, 252. 

Power plant— 

3 Laidlaw Dunn Gordon duplex belt-driven compressors, Nos. 273, 274, 275. 
3 90-horsepower General Electric motors, Nos. 276, 277, 278. 

3 standard panel boards. 

1 remote control panel board. 

2 receiver tanks. 

Stock Yards Station: 

Terminals— 

1 sluice-gate closed receiver, No. 251. 

1 gravity transmitter, No. 250. 

Harrison Street Tunnel: 

1 motor. 

1 pump. 

Note. —-Necessary air piping, auxiliary piping, wiring, tools, etc., go with each 
equipment. 


SHOP AND STREET EQUIPMENT. 

[As per inventory marked “Exhibit M, Chicago No. 1.”] 

Said inventory comprises a property list, with a statement as to the 
condition of the articles enumerated, and, where practicable, a state¬ 
ment of the age and cost, so far as these can be determined. 

It becomes necessary here to state that I had been informed last 
June, when in Chicago, that the operating condition of the Chicago 
postal-tube system was not satisfactory and this impression appeared 
to be confirmed by report of the postmaster herewith inclosed, 
marked “Exhibit N, Chicago No. 2 ,” giving a statement of the 
interruptions and suspensions of said tube system between the general 
post office and its various branches for the calendar year 1912. 


268 


PNEUMATIC-TUBE SYSTEM. 


As given in said report, I inferred that the total number of said 
suspensions and stoppages in Chicago was 204, against 98 for New 
York and Brooklyn in the same period, although the latter system has 
about two and one-half times the mileage of the Chicago system. 
Reduced to the basis of stoppages per mile per year, in order to 
establish some standard of comparison, New York had 4 and Chicago 
20, as postmaster reported. 

I referred this statement to the general manager of the American 
Pneumatic Service Co. for comment and explanation. He returned 
it by stating that the Chicago system of reporting differed from that 
adopted by the other postmasters. For example, if there was a 
stoppage in the line serving three stations, under the Chicago method 
of reporting, it would be reported as three stoppages. He stated that 
the total number was about 80. Under these circumstances, on Feb¬ 
ruary 27, 1913, I returned to the postmaster of Chicago his original 
report, with a letter of February 26 from said manager of the company, 
and I asked that the postmaster kindly give consideration to the 
statements made therein and that the letter be returned to me with 
any comment he might deem proper. I further sent the postmaster 
of Chicago a duplicate of a report made by the postmaster of New 
York, so as to secure, if possible, uniformity in connection with this 
matter. 

When I was in Chicago, on March 5, 1913, the postmaster informed 
me that further data on the matter was being prepared, but at date 
of this writing (Mar. 9, 1913) it has not been received. As soon as 
it is received it will be transmitted to the commission. But even if 
there were only 80 stoppages, instead of 204, in the Chicago system, 
such number would indicate rather careless operation or bad mechan¬ 
ical conditions, plus, perhaps, an attempt to crowd the service on the 
tube serving the three principal stations. 

Giving due weight to all the information that I had at hand, I 
concluded that it would be best to make an exhaustive detailed 
mechanical examination of all the Chicago equipment, a process not 
required in the same minute detail by the other systems because of 
their obviously good going condition. (See general comments on 
stoppages and derangements in latter portion of this report.) 

A most thorough and painstaking inspection was made by Mr. 
W. A. Richardson, assistant chief engineer of United States public 
buildings, Chicago, and this detailed report, including repairs recom¬ 
mended, is herewith transmitted, marked “Exhibit O, Chicago, 
No. 3.” 

I was unable, of course, from lack of time, to check Mr. Richard¬ 
son’s reports, except as regards the power transmitting and receiv¬ 
ing mechanism; and these, so far as it was practicable to do, I did. 
I am, however, ready to stand behind the accuracy of his detailed 
statements, and believe that the depreciation which has been charged 
off against this plant for the past year—i. e., $38,370—will be required 
to put it in first-class operating condition. I therefore regard this 
item of depreciation a real thing, and not a more or less bookkeeping 
figure, to be considered as an offset against the theoretical taking over 
of the tubes beneath the streets by the city of Chicago on the expira¬ 
tion of the company’s present franchises. 

If these tubes were acquired by the United States, I do not believe 
that the city of Chicago would dispute the Government’s possession; 


PNEUMATIC-TUBE SYSTEM. 


269 


and if they were not acquired, I do not believe that the city would 
seize them, because I can imagine no more useless property to the 
municipality. They had obviously better permit said tubes to remain 
in service and obtain from the company the money now paid in as 
taxes, which, for 1912, was reported as $8,384.66. 

As regards the condition of the underground tubes themselves, I 
believe it to be generally good. Under authority granted by the 
commission, excavation was made on Sherman Street in rear of the 
La Salle Station and four tubes were exposed. Externally all were 
practically in as good condition as when laid, date of said laying being 
given as 1903-4. One 12-foot length of tube and one 11° bend were 
removed for accurate measurement, field and weather conditions 
making accurate measurements at site impracticable. The wear 
observed appeared somewhat greater than that noted in the other 
cities, and I have directed Mr. Richardson to remeasure these tubes 
and attempt to determine, if practicable, their original diameter and 
thickness, as well as the original diameter of the bends concerned, in 
order that no error may be made in reporting wear. ' (Exhibit P.) 

Mr. Richardson’s report, marked “Exhibit Q, Chicago, No. 4,” on 
the general going condition of the Chicago system is inclosed. It will 
be noted that he states it is in fair operating condition, with the 
physical condition of the lines good, save as to probable leakage in 
joints. For further details as to this leakage, see report marked 
“Chicago, No. 3,” page 337. Vaults were found in fair condition 
except as to drainage. Most of the past month the weather in 
Chicago has been more or less stormy and severe, and there was more 
or less water in vaults and freezing of drips. However, when I was 
in the city on March 4 and 5, the amount of moisture in the lines 
coming out with the carriers was comparatively small. 

It is fair to supplement the foregoing by stating that undoubtedly 
one of the most serious troubles encountered in the Chicago operation 
has been the tendency to crowd the line connecting the general post 
office with three of the principal postal stations. This trouble is 
now corrected by use of motor-driven time locks, set for about 
12 seconds headway. Since these were installed and the oper¬ 
ators thus prevented from tripping the receivers by hand and so 
operating on too close a headway between carriers, troubles incident 
to overcrowding the line have diminished. But an 8-inch system 
can not adequately handle between said stations the enonnous busi¬ 
ness that is tendered during rush hours, and while I have given esti¬ 
mates for duplicating the Chicago system, I would not advise said 
duplication so far as connections between the railroad stations and 
the general post office are concerned. Moreover, considering present 
electrical developments, the power installation, notably at the 
Armour Station, could be improved. 

The chief engineer of the American Pneumatic Co. accompanied 
me to Chicago, and I have an impression that as the result of his 
personal examination in that city there will be still further im¬ 
provement in the operating conditions. It is intended, I understand, 
to supplement many of the old carriers now in service with new ones; 
in fact, a considerable delivery of same has already been made. 

As concerns the Kinzie Street Station, I was informed that this is 
shortly to be relocated. This will lead to better line construction 
in the new location and the elimination of the old brass bends now 
in service. 


270 


PNEUMATIC-TUBE SYSTEM. 


SECOND. PROBABLE COST OF CONSTRUCTION. 


The remarks on pages 252 and 253, this report, in reference to con¬ 
struction costs in New York City apply, to a very considerable extent, 
to Chicago as well. The tube company gives costs as follows: 


Mileage, 9.6017. 

Total cost’. 

Cash cost. 

Cost per mile: 

Total. 

Cash. 


$1, 002, 960. 39 
614, 482. 19 

104, 456. 00 
63, 997. 00 


THIRD. COST OF DUPLICATION OF SYSTEM. 

In their report of February 14, 1913, the American Audit Co. 
gives the ledger cost of the Chicago system as $905,188.76. I esti¬ 
mate the cost of reproducing or duplicating the present Chicago 
system, under conditions now obtaining, as $653,318.87. This 
would be at the average rate of $68,042 per mile, including the equip¬ 
ment. This estimate is made up on the same basis as the New York 
estimates have been prepared, giving due weight to the observed and 
reported existing conditions in Chicago. It has been estimated that 
in the heart of the city street construction at the present time would 
be from 20 to 25 per cent more expensive less it was when the tubes 
were installed in 1903-4. As stated elsewhere, however, I would not 
recommend the reproduction of all the present lines, because the 
service to the depots could be improved. 

VALUE OF PRESENT SYSTEM TO GOVERNMENT. 


This question is no less complicated in Chicago than elsewhere, but 
under existing conditions I do not think the value to the Post Office 
Department is as great as it is in New York, Boston, or Philadelphia. 
However, since this is an intangible asset, it does not find expression 
in dollars and cents. Working out, however, this matter of “value” 
in substantially the same manner as for New York we obtain the 
following: 


First. The American Audit Co.’s ledger cost account, set forth in their 

report of Feb. 14 (Exhibit I). 

Second. My estimate of probable cost of duplication (see p. 270, this 

report).'.. 

Third. The going value, i. e., the sum capitalized that would produce 
the present net revenue of the company received from the rental of 
the Chicago system. This net profit over all expense and interest 
charges for their fiscal year ending Mar. 31, 1912, is given as $24, 667.67, 
and if we capitalize this at 4 per cent it would make a going principal 
for the tube system of. 


$905,188. 76 
653, 318. 87 


616, 691. 75 


The aggregate of these equals. 2,175,199. 38 

Divided by 3 we would get as the value on this basis of this system_ 725, 066. 46 

Note.— Item charged as depreciation is not included, since it is a bookkeeping 
matter intended to cover the taking over of these tubes by the city of Chicago on 
expiration of present franchises. I should charge this so-called depreciation" item 
this year against any sum that might be actually paid by the Government, holding 
that it is required to put the system in first-class condition. This item is given in 
schedule B of said audit company’s report as $38,370. This is a much larger charge 
than the real depreciation would be in any one year, assuming repairs to be properly 
kept up as they have been in other tube systems. 











PNEUMATIC-TUBE SYSTEM. 


271 


It is perhaps fair, as in the case of New York, to consider on the 
basis of the foregoing formula the result of a computation if we cap¬ 
italize the Chicago tube company as a going concern on its gross in¬ 
come less operating expenses only. On this basis the formula would 
work out as follows: 


First. American Audit Co.’s ledger cost account, set forth in their re¬ 
port of Feb. 14. 

Second. My estimate of probable cost of duplication (see p. 270 of this 
report).. ... 

Third. The going value as the tube company claims it, i. e., the sum 
capitalized that would produce the net revenue of said company re¬ 
ceived from the rental of the Chicago system, deducting the operating 
expenses only, which is given by the American Audit Co. as $75,164.35. 
Deducting this amount from the rental received from the United 
States Government for the year ending Mar. 31, 1912, i. e., $161,286, 
the balance would be $86,121.65, and this capitalized at 4 per cent 
would equal. 


$905,188. 76 
653, 318. 87 


2,153, 041. 25 


. Aggregate of these 3 amounts. 3, 711, 548. 88 

Divided by 3 we get, as the value, on this basis, of this system. .A. 1, 237,182. 96 

This is $234,222 above the total cost claimed by the company. 

Note. —See note, page 255 of this report, as regards charge for taxes and insurance, 
which, for Chicago, aggregate $8,828.49. They would not be recognized as Govern¬ 
ment charges. 

It would be possible to work out several variables on these more 
or less theoretical bases of the valuation to the Government, but as 
heretofore stated this is a question that must be settled by equity 
and public policy as well as by any engineering or auditing data, and 
this policy will doubtless be settled by the commission after due de¬ 
liberation. 


FOURTH. PROBABLE OPERATING COST UNDER GOVERNMENT OWNER¬ 
SHIP. 

The operating costs of the tube company for their fiscal year end¬ 
ing March 31, 1912, taken from the items given by the American 
Audit Co.’s schedule B, are as follows, given in the left-hand column, 
my estimated cost of operation being given in the right-hand column: 


General expenses. 

Operating expenses, including repairs 
Power. 

Total. 


Tu be com¬ 
pany’s oper¬ 
ating ex¬ 
penses. 

Govern¬ 
ment’s esti¬ 
mated oper¬ 
ating ex¬ 
penses. 

$16,201.14 

$1,500 

37,790.53 

49,921 

25,231.84 

20,184 

79,223.51 

71,605 


(There is a slight difference in the American Audit Co.’s addition as stated in proof sheets, schedule B.) 

Note. —There is an item of $5,156 covered in as extraordinary expenses in the company’s report that 
I understand is to cover changes in station locations. I have not included this in the foregoing table because 
it seems obvious in this instance, as in all others, that the matter of moving stations is something that 
may vary any year. It is hoped, with the new policy of the Post Office Department, however, which, as 
I understand, is to select thoroughly suitable buildings and make 10-year leases, that the number of future 
station removals will be less than those in the past. 


In this case, as in similar instances in the other large cities con¬ 
cerned, the Government labor operating charges are estimated as 
larger than the tube company’s by, say, 25 per cent, because the 






















272 


PNEUMATIC-TUBE SYSTEM. 


Government properly pays a minimum of, say, $2 a day to the class 
of help that would be employed as operators, works them, normally, 
but 8 hours daily, and allows a vacation period usually of 2 weeks, 
also some sick leave. I have therefore given due weight to these 
conditions in increasing the labor items in operating costs because the 
pneumatic tube companies pay a number of their operators less than 
$2 and normally require 10 hours’ service. 

Disregarding, for the time being, the elements of interest and 
depreciation, if the Government purchased this tube system, the 
present and estimated costs of the postal pneumatic service in 
Chicago would be as follows: 


Present cost: Annual rental now paid on 9.6017 miles. $161, 286 

Cost of Government operation, including repairs. 71, 605 

Annual difference in favor of Government ownership. 89, 681 


Depreciation has been covered by a separate recommendation, as 
heretofore noted. 

As regards the element of interest, this can not be determined until 
a purchase price be fixed. If, for the sake of argument, we took the 
purchase price as the total cost to the company, i. e., $1,002,960.30, 
the interest charge at 2^ per cent would amount to $25,074. If we 
deduct this amount from the annual difference in favor of Government 
ownership, i. e., $89 681, there would be left $64,607 as a dividend on 
the investment named after operating costs and interest charges 
were met. 


BOSTON PNEUMATIC TUBE SYSTEM. 

Owner: Boston Pneumatic Transit Co. 

Reference is had to Exhibit S, Boston Pneumatic Transit Co. list 
of equipment, February 5, 1913, from which the following is sum¬ 
marized : 


FIRST. PHYSICAL DESCRIPTION. 

Installations made 1897 to date. 

Routes shown by inclosed map, Exhibit R, marked “Map of Bos¬ 
ton, Mass.,” showing routes of pneumatic mail tubes, Boston Pneu¬ 
matic Transit Co., Boston, Mass., 1911. 

Length of tubing in use, 8-inch, 4.160 miles; 10-inch, 9.8634 miles; 
total, 14.0234 miles. 

i ote.— By mutual agreement the Government is paying the com¬ 
pany for but 6.7740 double miles, or 13.5480 miles, of service, although 
7.0117 miles, or 14.0234 single miles, are in actual use. 

In addition to the above, the following tubes are laid in the streets 
but not in use: 

1. Approximately 595 feet of double tube, extending from Claren- 
den Street and St. James Avenue to former site of Back Bay post 
office in Copley Square. 

• 2. Approximately 1,815 feet of double tube, extending from Back 
Bay post office to the old parcel-delivery station on West Newton 
Street. 






PNEUMATIC-TUBE SYSTEM. 


273 


3. Approximately 271 feet of double tube, extending from corner 
Harrison Avenue and Ziegler Street, on Harrison Avenue, to the 
corner of Harrison Avenue and Dudley Street. 


Street vaults. 24 

Sets of bends, approximately 95 pairs, i. e., sets. 190 

Also necessary drips, closures, dutchmen, etc. 

Number of carriers: 

8-inch line, 300 sets, total. 600 

10-inch line, 80 sets, total. 160 


STATION AND POWER EQUIPMENT. 


760 


General post office: 

Terminals— 

1 sluice-gate open receiver, No. 154. 

1 revolving-valve open receiver, No. 155. 

2 gravity transmitters, Nos. 153, 156. 

1 motor time lock, No. 291. 

Power plant— 

1 75-horsepower Rand drill duplex steam compressor, No. 177. 

2 60-horsepower Rand drill duplex steam compressors, Nos. 178, 179. 
1 air receiver, No. 180. 

1 panel board. 

North station: 

Terminals— 

1 sluice-gate closed receiver, No. 151. 

1 gravity transmitter, No. 152. 

South station: 

Terminals— 

2 revolving-valve closed receivers, Nos. 157, 159. 

2 gravity transmitters, Nos. 158, 160. 

1 motor time lock. 

Essex station: 

Terminals— 

2 revolving-valve open receivers, Nos. 163, 165. 

1 revolving-valve closed receiver, No. 161. 

2 revolving-valve transmitters, Nos. 164, 166. 

1 cradle transmitter, No. 162. 

Power plant— 

2 Rand drill belt-driven duplex air compressors, Nos. 184, 186. 

1 Connersville belt-driven blower, No. 188. 

3 General Electric 50-horsepower motors, Nos. 183, 185, 187. 

2 combination remote-control panel boards, Nos. 181, 182. 

1 standard panel board. 

1 air receiver, No. 199. 

Back Bay station: 

Terminals— 

1 revolving-valve closed receiver, No. 167. 

1 revolving-valve transmitter, No. 168. 

Station A: 

Terminals— 

1 revolving-valve closed receiver, No. 169. 

1 revolving-valve transmitter, No. 170. 

Roxbury Station: 

Terminals—- 

1 revolving-valve open receiver, No. 171. 

1 revolving-valve closed receiver, No. 173. 

2 revolving-valve transmitters, Nos. 172, 174. 

Power plant— 

2 Rand drill belt-driven duplex compressors, Nos. 190, 192. 

2 General Electric 50-horsepower motors, Nos. 189, 191. 

1 air receiver, No. 198. 

2 panel boards. 

1 motor-driven time lock. 

1 power-control apparatus. 


78419—13-18 








274 


PNEUMATIC-TUBE SYSTEM. 


Uphams Corner Station: 

Terminals— 

1 revolving-valve open receiver, No. 176. 

1 revolving-valve transmitter, No. 175. 

Power plant— 

1 Rand drill belt-driven duplex compressor, No. 196. 

1 Connersville belt-driven blower, No. 194. 

2 General Electric 50-horsepower motors, Nos. 193, 195. 

1 panel board. 

1 air receiver, No. 197. 

Note. —Necessary air piping, auxiliary piping, wiring, tools, etc., go with each 
equipment. 

SHOP AND STREET EQUIPMENT. 

[As per inventory marked “Exhibit S, B. P. T. Co. No. 1.”] 

% 

The inventory comprises a list of all property and equipment, 
with statement of age, cost, and condition of the articles enumerated, 
so far as same can be determined. As will be seen by the inventory, 
the general condition of the operating apparatus (receiving, dis¬ 
patching, and power-plant machinery) is very good, and depreciation 
has been offset by judicious repairs and renewals from time to time. 
This is further substantiated by the list of stoppages reported by the 
postmaster’s office, Boston, giving the cause and duration of inter¬ 
ruption of service, and the stations affected, during the calendar year 
of 1912, and marked “Exhibit T, B. P. T. Co. No. 2.” 

Further comment on the matter of stoppages is made hereinafter, 
but it may be here recorded that there was but one stoppage per 
mile of tube in the Boston postal lines during the year 1912, showing 
good mechanical condition and careful operation. 

A thorough examination of the exterior surfaces of tubes exposed 
in manholes and in streets, where uncovered by excavations for the 
construction of subways, shows that practically no deterioration has 
taken place on account of corrosion or electrolysis. 

Three hundred feet of 10-inch double tube line, laid in 1901, was 
exposed in Boylston Street by subway construction, and no appreci¬ 
able corrosion from any cause was found; in fact, the original 
exterior skin coat of asphaltum or other material was generally 
undisturbed. Some of the tubes examined were laid in streets hav¬ 
ing electric surface car lines with fairly heavy traffic, yet no evi¬ 
dence of electrolysis was found, and it is quite reasonable to assume 
that no corrosion or pitting from this cause has taken place. 

Careful examination and measurement were also made of the 
interior of sections of tubes removed at random for -this particular 

E urpose from lines laid in 1897, and the difference in diameters found 
etween the horizontal and vertical axes, and between the original 
and present diameters of bore, substantiates the claim that the wear 
in general on the tubes by reason of carrier friction is inconsequen¬ 
tial, and their useful life is probably longer than one generation of 
mankind. 

The condition of tubes, manholes, receiving and dispatching 
machinery, power plants, etc., is set forth in report marked “Exhibit 
U, B. P. T. Co. No. 3,” made by Mr. Edwin H. Pearson, chief engi¬ 
neer and superintendent of repairs, United States public buildings, 
Boston, Mass., after a thorough and exhaustive examination of 
same, and confirms my own personal knowledge of the condition of 
this equipment. I personally inspected tubes excavated on February 
20, 1913. 


275 


PNEUMATIC-TUBE SYSTEM. 


SECOND. PROBABLE COST OF CONSTRUCTION. 

The remarks made on page 252 of this report in connection with 
the tube systems in New York and Brooklyn apply equally well to 
conditions in Boston. 

According to the Boston Pneumatic Transit Co.: 


Total construction cost per mile was. $62, 358 

Cash cost per mile. 56, 750 

Report of the post-office commission, 1909, gave as follows: 

Estimated cost for duplicating system per mile, not including patent rights 
and franchise. $64,952 


The chief engineer of the American Pneumatic Service Co. esti¬ 
mates the cost per mile as $65,329, which includes all items of cost 
of every nature, such as franchises, legal expenses, patents, interest, 
costs of obtaining capital, and losses due to lines abandoned incident to 
changes in location of substations. Obviously all of these items are 
legitimate charges, but are difficult to secure or estimate when 
evaluating completed equipment. It is therefore reasonable to 
assume the figure given by the chief engineer of the American Pneu¬ 
matic Service Co. is a fair statement of cost per mile. 

On this basis per mile the cost of the entire installation in Boston, 
including station, power plant, and street equipment, totals $442,539. 

THIRD. COST OF DUPLICATION OF SYSTEM. 

Based upon detailed estimates of costs of tubes, boring, special 
fittings, trucking and delivery, laying, trench work, including restora¬ 
tion of street surfaces, inspecting, engineering and terminal apparatus, 
I estimate the present entire equipment in Boston could be duplicated 
for $426,762. (Cost per mile on this basis, $62,704.) 

The prices for receiving and dispatching apparatus, special bends, 
fittings, and manholes are based on figures supplied by the American 
Pneumatic Service Co. and appear reasonable. Costs of compressors, 
blowers, and other station apparatus are those paid by the company 
in open competition, checked by costs of similar apparatus in New 
York and Philadelphia, as well as costs of the present Government- 
owned line in New York. 


VALUE OF PRESENT SYSTEM TO GOVERNMENT. 


By taking an average of the cost of construction, the cost of repro¬ 
duction, and the going value we have: 


First. American Audit Co.’s ledger construction account, set forth in 

their Exhibit I, of Feb. 14, 1913.. 

Second. Using my estimated probable cost of duplication. 

Third. The going value, or capitalized sum that would produce the 
present net revenue received by the company from the rental of the 
Boston system. This net profit over all expenses and interest charges 
for their fiscal year ending Mar. 31, 1912, is given as $44,400.99, which, 
capitalized at 4 per cent, makes a going principal for tliis system of.. 


$399, 585. 80 
426, 762. 00 


1,110, 024.75 


Divided by 3, gives as a value, on this basis 


1, 936, 372. 55 
645,457. 52 









276 


PNEUMATIC-TUBE SYSTEM. 


If we consider a computation based on the following factors, we 


get the results as stated below: 

First. The American Audit Co.’s ledger account. $399, 585. 80 

Second. Using my estimated probable cost of duplication (see p. 275 of 

this report). 426, 762. 00 


Third. The going value, as represented by the sum capitalized that 
would produce the present net revenue received from the rental of 
the Boston system, less operating expenses given by the American 
Audit Co. in Exhibit A of their report of Feb. 14, 1913. Deducting 
said operating expenses, $46,290.64, from the said rental, $115,158, 
there would be a gross operating profit of $68,868.36, and if we capi¬ 
talized this balance at 4 per cent it would make a going principal for 


the system named of. 1, 721, 709. 00 

Aggregate of these sums. 2, 548, 056. 80 


Divided by 3, we would get as the value on this basis of this system... 849, 352. 27 

Note. —The value of the Boston installation, based on this method, is probably 
entirety too high; but these figures are given, as the same method was employed for 
comparison of the systems in New York and other cities. 


Or, again, if we accept the tube company’s cash cost as. $384, 418.12 

My estimated cost. 426, 762. 00 

The going value—i. e., the sum capitalized at 4 per cent that would 
produce the present net revenue received from rental of Boston tube 
system.. 1,110, 024. 75 


Aggregate of the three sums. 1, 921, 204. 87 

Divided by 3, we have, as the value on this basis. 640, 401. 62 


(See p. 255 for notes on taxes and insurance.) 

FOURTH. PROBABLE OPERATING COST UNDER GOVERNMENT OWNER¬ 
SHIP. 

From proof sheets of the American Audit Co.’s report to the 
commission of February 14, 1913, schedule 1, it is found that the 
operating cost of the Boston Pneumatic Transit Co.’s system for 
their last full fiscal year is as given below, together with the esti¬ 
mated cost of operation by the Government: 



Tube 

company’s 

operating 

expenses. 

Govern¬ 
ment’s esti¬ 
mated oper¬ 
ating ex¬ 
penses. 

General expenses. 

$4,150.60 
24,867.75 
17,272.29 

84,103.00 
32,645.00 
i 15,545.00 

Operating expenses, including repairs. 

Power. 


46,290.64 

52,293.00 


1 Less 10 per cent. 


It is estimated that labor under Government operation would 
involve higher costs because of shorter hours, sick leave, vacation 
period, and restrictions in the securing of help imposed by civil-service 
regulations. 

Disregarding interest on cost price and depreciation, the present 
and estimated costs of the Boston tube service are: 


Present cost: Annual rental on 6.774 miles. $115,158 

Cost of Government operation, including repairs. 52, 293 

Net difference in favor of Government ownership. 62, 865 


































PNEUMATIC-TUBE SYSTEM. 


277 


If the purchase price is fixed on the principle adopted by the 
Public Service Commission of the First District of New York (see p. 253 
of this report), the investment account would be as follows: 


Ledger cost of construction. $399, 585. 80 

Intangible property, 9 per cent. 35, 962. 72 


435, 548. 52 

Interest on same, at 2 \ per cent. 10, 888. 71 


446, 437. 23 

If we deduct the above interest, $10,888.71, from the net difference 
between present rental and estimated Government operating cost, 
$62,865, we have a net saving by Government ownership of $51,976.29 
and a return of first cost in eight years. 

This particular installation would return a handsome dividend to 
the Government on the above basis. 


If we take the value arrived at hereinbefore (p. 276 of this report).$640,401. 62 

Intangible property, 9 per cent.. 57, 636.15 

698, 037. 77 

Interest at 2.5 per cent. 17,450. 94 

This gives as the aggregate. 715,488. 71 


The net saving by Government ownership would repay this aggre¬ 
gate in a little less than 14 years. 

The writer desires to amplify these statements before the commis¬ 
sion if opportunity permits. (See minor differences in Boston costs, 
schedule B and schedule 1, American Audit Co.’s report.) 

DEPRECIATION. 

Remarks made in connection with the New York and Brooklyn 
lines apply also to the Boston system. I do not regard depreciation 
as a factor worth consideration, as the inspection of apparatus indi¬ 
cates that this element is insignificant, provided always repairs and 
maintenance are kept up. 

ST. LOUIS PNEUMATIC TUBE SYSTEM. 

Owner: St. Louis Pneumatic Tube Co. 

Reference is had to Exhibit W, St. Louis Pneumatic Tube Co. list 
of equipment, February 5, 1913, from which the following is sum¬ 
marized : 

FIRST. PHYSICAL DESCRIPTION. 

Installation made in 1903-4. 

Routes shown by inclosed map, Exhibit V, marked “Map of por¬ 
tion of St. Louis, Mo., showing route of pneumatic mail service.” 


Length of tubing in use: 

Double miles. 3. 8930 

Single miles. 1- 9465 

Street vaults. .... . 5 

Sets of bends, 25 pairs, i. e., sets. 50 

Drips. 20 

Test valves... 6 

Number of carriers. 528 




















278 


PNEUMATIC-TUBE SYSTEM. 


STATION AND POWER EQUIPMENT. 

Central station: 

Terminals— 

2 revolving-valve open receivers, Nos. 353, 354. 

2 gravity transmitters, Nos. 355, 356. 

Power plant— 

1 75-horsepower Laidlaw Dunn Gordon duplex steam compressor, No. 351. 

1 75-horsepower Rand Drill Co. duplex steam compressor, No. 352. 

1 gauge board. 

1 air receiver, No. 362. 

General post office: 

Terminals— 

1 revolving-valve closed receiver, No. 350. 

1 gravity transmitter, No. 358. 

Bridge post office: 

Terminals 

1 revolving-valve closed receiver, No. 359. 

1 gravity transmitter, No. 360. 

Note. —Necessary air piping, auxiliary piping, wiring, tools, etc., go with each 
equipment. 

SHOP AND STREET EQUIPMENT. 

[As per inventory marked “ St. Louis No. 1.”] 

This inventory comprises a property list, with statement as to con¬ 
dition of articles enumerated, together, where practicable, with state¬ 
ment of age and cost, so far as same can be determined. The general 
going condition of the plant and apparatus appears to be very good. 
This is illustrated by report of stoppages in tube system for calendar 
year 1912, made by the postmaster, St. Louis, dated February 20, 
1913, marked “ Exhibit X, St. Louis No. 2 ,” herewith inclosed, which 
report gives the date, location, duration, and cause of said stoppages. 
There were but 11 stoppages during the year. This is at rate of 6 
per mile per year. 

The condition of the underground tubes in St. Louis is believed to 
be substantially as good as when first installed. This opinion is based 
on freedom from stoppages, on the fact that the St. Louis water 
department reports no appreciable damage done from electrolysis in 
the district covered by the tubes, that voltmeter tests have indicated 
only a fraction of a volt of stray current pressure found anywhere, 
and that the soil through which the St. Louis lines are laid is very 
free from agents producing chemical action in cast-iron pipe. So 
far as known, no street work has been done which would damage the 
tubes since same were laid. 

The mechanical engineer and inspector who assisted me in St. Louis 
is Chief Engineer Edwin S. Hallett, of the United States public build¬ 
ings in that city. The favorable result of his inspections was con¬ 
firmed by my own examinations. A report from Mr. Hallett is 
inclosed, marked “Exhibit Y, St. Louis No. 3.” 

SECOND. PROBABLE COST OF CONSTRUCTION. 

The American Audit Co.’s report dated February 14, 1913, to 
the commission gives the total construction cost in St. Louis at 
$149,489.11. According to the American Pneumatic Co. the cost 
is given as 

Total cost 
Cash cost. 


$275,121. 99 
108, 856. 95 




PNEUMATIC-TUBE SYSTEM. 


279 


Subject to further conference with the commission and with the 
American Audit Co., I infer the latter’s figure fairly represents the 
actual construction cost with which the company may be credited, 
plus a proper profit and loss account. 

THIRD. COST OF DUPLICATION OF SYSTEM IN ST. LOUIS. 

The probable cost of duplicating the present pneumatic system in 
St. Louis, including all power and station apparatus, I estimate at 
$123,000. Including equipment, this is at the rate of, say, $62,000 
per mile. But I would not duplicate the present line. 

This figure, as in the case with regard to New York, is based on 
detailed estimates of cost of tube, boring thereof, special fittings 
and their boring and grinding, trucking and delivery, trench work, 
including restoration of surfaces, etc., tube laying, inspecting and 
engineering and terminal apparatus. For receiving and dispatching 
apparatus and special bends and fittings I have used the prices given 
me by the chief engineer of the American Pneumatic Service Co., 
since they seemed reasonable. Other costs have been independently 
estimated and obtained. Prices for compressors and blowers have 
been taken from those paid, after competition, by the American 
Pneumatic Service Co. for similar apparatus. Said prices seem com¬ 
mercially reasonable, judging by present rates, considering the long- 
credit given. 

VALUE OF PRESENT SYSTEM TO THE GOVERNMENT. 

If we should accept the statement of the American Pneumatic 
Service Co. that the total cost of the St. Louis system was $275,121.99, 
and if we assume that the Government took said system over at that 
price, and if the interest account be considered, then the proposition 


would stand as follows: 

Interest on $275,121.99, at 2.5 per cent... $6, 878. 04 

Deducting this interest, $6,878.04, from $10,085, the amount of the annual 
difference in favor of Government ownership, would give, as the Govern¬ 
ment profit on the investment. 3, 206. 96 


I do not think it unfair to assume that this amount would repre¬ 
sent a minimum dividend free and clear of all expenses. This might 
be said to be the value of the tube system to the Government, plus 
the practical value to the Post Office Department and the people, 
something which, as has heretofore been stated, can not be expressed 
in the terms of dollars and cents. 

FOURTH. PROBABLE OPERATING COST UNDER GOVERNMENT OWNER¬ 
SHIP. 

Consulting the proof sheets of the American Audit Co.’s report to 
the commission of February 14, 1913, received by me February 21, 
1913, and using schedule 4 of said report, the operating cost of the 
St. Louis Pneumatic Tube Co. for the last full fiscal year is given in 
the left-hand column hereinafter. My estimated Government cost 
of operation is given in the corresponding right-hand column. 




280 


PNEUMATIC-TUBE SYSTEM. 



Tube com¬ 
pany’s oper¬ 
ating ex¬ 
penses. 

Govern¬ 
ment’s esti¬ 
mated oper¬ 
ating ex¬ 
penses. 

General expenses. 

$6,353.56 
12,814.02 
4,952.76 

$500 
18,005 
4,500 

Operating expenses, including repairs. 

Power. 


24,120.34 

23,005 


In this case, as in similar instances in the other large cities con¬ 
cerned, the Government labor operating charges are estimated as 
larger than the tube company’s by, say, 25 per cent, because the Gov¬ 
ernment properly pays a minimum of, say, $2 a day to the class of help 
that would be employed as operators, works them, normally, but 
eight hours daily, and allows a vacation period usually of two weeks, 
also some sick leave. I have therefore given due weight to these 
conditions in increasing the labor items in operating costs because 
the pneumatic-tube companies pay a number of their operators less 
than $2, and normally require 10 hours’ service. 

Disregarding, for the time being, the elements of interest and de¬ 
preciation, if the Government purchased this tube system, the present 
and estimated costs of the postal pnuematic service in St. Louis would 
be as follows: 


Present cost: Annual rental now paid on 1.9465 miles. $33, 090 

Cost of Government operation, including repairs.. 23, 005 

Annual difference in favor of Government ownership. 10, 085 


Depreciation is covered, as heretofore noted for New York, by re¬ 
pair account. If interest is to be considered as a factor, and if we 
fix the purchase price at the American Audit Co.’s ledger cost of 
$149,489.11, the interest on this sum, at 2.5 per cent, would be 
$3,737.22, and this, deducted from the annual saving by Government 
ownership, would leave for Government profit on the investment 
above operating expenses, repairs, and maintenance, $6,347.78. 

As in other cases, I request that I be allowed to discuss with the 
commission the matter of “value” to the Government. 

I feel constrained to state, however, that under the conditions that 
have developed since the occupancy of the new general post office, 
adjacent to the Union Station, in October, 1912, "the tube system is 
not accomplishing what it should if its value to the Government is 
to be considered; and the extension of said system, I am informed 
by the postmaster and by representatives of the principal newspapers 
of St. Louis, is very strongly desired by the business interests of that 
city. 

To make a tube system for the center of St. Louis effective, about 
2.1 miles of new construction should be undertaken. This new con¬ 
struction would virtually form the southern side of a loop of which the 
present system would form the northern side. 

The suggested addition is indicated in blue on the inclosed map, 
showing route of pneumatic mail service in St. Louis. Its estimated 
cost would probably not exceed $60,000 per mile, including equipment. 

It will be noted that at present only the general post office, the old 
post office, and the Bridge Station are connected, whereas the pro- 




















PNEUMATIC-TUBE SYSTEM. 


281 


posed construction would serve to connect up the Merchants’ 
Exchange Station, Cupples Station, and Progress Station, in addition 
to the present system; and since these comprise the principal stations 
in the heart of the city, there is no question but what the bettered 
service would be appreciated by the business community and would, 
I believe, be justified. 

In this case I have gone beyond the prescribed routine followed in 
other cities, because, considering the present system alone, I do not 
think the Government would be justified in duplicating it, more espe¬ 
cially as administrative and other conditions seem to have made it 
necessary that the connections to the new general post office be 
through the Union Station; whereas had the construction and occu¬ 
pancy of this office preceded the laying out of the westerly portion of 
the present tube line, said line would have been run from the corner of 
Pine and Eighteenth Streets directly down to the general post office, 
and about 2,348 feet of mileage would have been saved thereby. 


RELIABILITY OF SYSTEMS. 


There follows a statement of the number of interruptions or stop¬ 
pages in the pneumatic-tube systems of New York, including Brook¬ 
lyn, Philadelphia, Boston, and St. Louis. 

Chicago is for the present omitted because of nonreceipt of a 
possibly revised report from the postmaster of said city, heretofore 
referred to. It wifi be later furnished. 

The record for the four cities first named I consider excellent. 

In order to obtain a common basis of comparison, we may consider 
the number of stoppages per mile per year, and these would be as 
follows: 


New York and Brooklyn. 

Philadelphia. 

Boston. 

St. Louis. 

Government-owned line between United States customhouse and United States 
appraisers’ warehouse, New York City. 


4 

4.6 

1 

6 

1 


The two stoppages in the Government-owned tube in New York 
were due to moisture freezing within during Sundays in February, 
1912, and during the coldest weather New York City has had for 
many years. 


Causes of interruption in pneumatic-tube system. 


NEW YORK. 



Number. 

Per cent. 

Accidents to receiving mechanism. 

17 

17.50 

Accidents to transmitting mechanism. 

12 

12.40 

Blocked by carriers in tubes (open or defect). 

41 

42.30 

Tubes blocked by street settlement or disturbance. 

14 

14.40 

Tubes blocked by moisture freezing within. 

4 

4.10 

Disarrangement of operating mechanism. 

6 

6.20 

Alterations in lines. 

3 

3.10 



Total. 

97 

100.00 


























282 


PNEUMATIC-TUBE SYSTEM 


Causes of interruption in pneumatic-tube system —Continued. 

PHILADELPHIA. 


Number. 


Per cent. 


Accidents to receiving mechanism. 

Accidents to transmitting mechanism. 

Accidents to compressors and motors. 

Failure of current supply from outside. 

Blowing fuses and circuit breakers. 

Tubes blocked by carriers (open or defect). 

Tubes blocked by street settlement or disturbance 
Tubes blocked by moisture freezing. 

Total. 


8 

11 

2 

9 

4 

5 
3 
1 


18.60 

25.60 
4.70 

20.90 

9.30 

11.60 
7.00 

2.30 


43 


100.00 


BOSTON. 


Accidents to receiving mechanism. 

1 

12.50 

Accidents to transmitting mechanism. 

1 

12.50 

Accidents to compressors and motors. 

2 

25.00 

Tubes blocked by carriers (open or defective)... 

1 

12.50 

Disarrangement of operatingmechanism. 

2 

25.00 

Tubes blocked by moisture freezing. . _. _ _ 

1 

12.50 



Total. 

8 

100.00 



ST. LOUIS. 


Tubes blocked by carriers (open or defective). 

3 

1 

1 

6 

27.30 
9.10 
9.10 
54.50 

Tubes blocked by street settlement or disturbance. 

Disarrangement of operating mechanism. 

Unknown.1. 

Total.•.. 

11 

100.00 



CHICAGO. 


Accidents to receiving mechanism. 

8 

9.52 

Accidents to transmitting mechanism. 

9 

10.72 

Accidents to compressors^and motors. 

3 

3.57 

Blowing fuses and circuit breakers.-. 

1 

1 20 

Carriers blocked in tubes (open or defect). 

30 

35.71 

Tubes blocked by street settlement or disturbance where difficulty was known or 

reported. 

Reported as “unknown,” but probably due to tubes getting out of line or breaking, 
incident to reported leaks in city water mains, or settlement of filled ground, break¬ 
ing of sheet piling, foundation supports, etc. 

8 

22 

9.52 

26.19 

Probably due "to carelessness of operators.. 

3 

3.57 



Total. 

84 

100.00 



REMARKS ON DUPLICATION OF SYSTEMS. 

It has, of course, been necessary to consider the cost of duplicating 
the present systems; but to be forced to duplicate because of ina¬ 
bility to purchase them at a fair price, if Government ownership be 
determined on, would involve waste of human accomplishment and 
of a large investment, for the present tube systems, except perhaps 
part of the 10-inch line in Boston, would be next to useless to anyone 
save the United States Post Office Department. Besides the physical 
reconstruction in the heart of the business centers of great cities 
would be a matter of serious difficulty and cause much public incon¬ 
venience to populations who for years have suffered from previous 
lack of consistent policies and foresight in the conduct of municipal 
works so far as they relate to the reconstruction of streets and of the 


























































PNEUMATIC-TUBE SYSTEM. 


283 


subways, pipes, ducts, and wires beneath them. Some photographs 
transmitted of street work in New York illustrate the difficulties 
referred to and the wisdom of avoiding needless disturbance of traffic, 
with accompanying risk to public health and welfare. 

I believe the estimates on cost of duplication are fair for each sys¬ 
tem; but it should be borne in mind that until bids are actually 
taken for special work of this description it is next to impossible to 
determine how contractors would look upon it. Work of this char¬ 
acter heretofore put on the market has never attracted general 
competition. 

The installation of the pneumatic-tube line owned by the United 
States Treasury Department between the United States appraisers’ 
warehouse and the United States customhouse, New York, N. Y., was 
thoroughly advertised in January, 1910, for a considerable period, 
and tenders were solicited not only by customary advertisement and 
the posting of notices in public places, but also by letters, and yet 
but one bid was received, i. e., that of the New York Pneumatic 
Service Co. 

If work of this kind along a route not unduly difficult failed to 
attract any competition when engineering contracting work in gen¬ 
eral in New York was rather dull, it would appear that this condition 
would be a factor that we must consider when contemplating dupli¬ 
cation. 


DATA CONCERNING GOVERNMENT-OWNED 8-INCH-DIAMETER PNEUMATIC TRANSMISSION 
TUBES BETWEEN UNITED STATES APPRAISERS’ WAREHOUSE AND UNITED STATES 
CUSTOMHOUSE, NEW YORK CITY. 


The route, which is diagonally across Battery Park and thence up Washington 
Street to the appraisers’ warehouse, is shown on attached plan. 

Tubes constructed during 1910; started for regular operation, January, 1911. 


Appropriation for construction. 

Contract cost, including electric conduit and all apparatus and equip¬ 
ment. 

Number of tubes. 

Length of each tube between outside building lines.feet.. 

Total length of each tube, including the lines in interior of buildings, 

about.. .feet.. 

One electric conduit, 4 inches in diameter, containing a pull wire, was 
laid with these tubes. 

There is one set of transmitting apparatus and one set of receiving appa¬ 
ratus of American Pneumatic Service Co.’s type, located in both 
appraisers’ warehouse and customhouse. 

Number of rotary blowers (1 steam driven, at appraisers’ warehouse; 1 

electric driven, at customhouse).. 

Maximum horsepower required for operation of each tube, at maximum 

speed and capacity.-. 

Total horsepower for circuit, at maximum speed and capacity.. 

Maximum speed, say.miles 

Air pressure required for 30-mile per hour speed.pounds 

Volume of air per minute for 30-mile speed.cubic feet 

Average horsepower required for normal operation of each tube. 

Total horsepower for circuit, normal use. 

Normal speed of carriers, miles per hour. 

Maximum practicable rate of dispatch of carriers, say.headway seconds 

Ordinary full-speed dispatch.do.. 

Average present normal dispatch of carriers between customhouse and 
appraisers’ warehouse is one every 4 minutes. 

It will thus be seen that if these tubes should be incorporated in New 
York postal system, their capacity could be easily increased. 


$175, 000 

$174, 150 
2 

10, 864 

11, 000 


2 

55 

110 

30 

8-9 

1, 300-1,400 
25 
50 
25 
10 
15 



















284 


PNEUMATIC-TUBE SYSTEM. 


Annual cost of operation of this system: 

For electric power purchased at customhouse. $1, 502. 00 

Note. —If we ourselves generated this current, the cost would 
be of said electric power, about $1,000. 

Cost of our generated steam power at United States appraisers’ ware¬ 
house, say. 1, 000. 00 

Annual cost of repairs and supplies, including new carriers. 672. 00 

Wages of three operators. 2, 520. 00 


Based on calendar year of 1912, total cost. 5, 694. 00 


It is to be noted that without greatly increasing the operating 
expense, the duty of these tubes could, as stated, be more than 
trebled if they were connected with the post-office system, experience 
showing that the increase in horsepower required does not largely 
increase with the number of carriers dispatched within reasonable 
limits, and it is obvious that an operator has to be paid his stipulated 
per diem wage whether he handles carriers at the rate of one in four 
minutes or four in one minute, although, of course, one man without 
relief could hardly keep up this rate of dispatch for eight hours. 

Contrary to the practice when first started, the customs authori¬ 
ties are now transmitting ah the brokers’ documents and papers via 
these tubes, and as occasion requires the customs business of said 
tubes will obviously increase without reference to a possible future 
post-office connection. 

The legislative and municipal franchises that made possible the 
installation of the Government-owned tube in New York were handled 
by the collector of the port and the supervising chief engineer of 
United States public buildings at New York, without any expense 
to the Government, and so far as I know there was no direct expense 
in securing the legislation. This condition would probably obtain 
with reference to any future Government extension or construction, 
at least in New York. 

With the Government operating there may arise in the future the 
necessity of payment for permits for street openings, and for city 
inspectors, watchmen, and the like. Though we have had no charges 
of this sort to meet for two years, if we acquired the postal systems 
they would doubtless form an element that would have to be con¬ 
sidered. Normally, however, these charges would be cared for in the 
amount allotted for repairs. 

ADDITIONALLY SUBMITTED BRIEFS OR MEMORANDA. 


There is inclosed herewith a letter dated February 25, 1913, from 
the chief engineer of the American Pneumatic Service Co., marked 
“ Exhibit Z,” stating that among the serious factors entering into 
their past construction costs is the value of the abandoned tube 
equipment in the various cities. Excluding Philadelphia, this is 
given as: 


For Boston.... 
For New York 
For Chicago... 
For St. Louis.. 


$8, 700. 64 
144, 879. 80 
34, 718. 00 
5, 043. 32 


Total. 193,341.76 

He also states that there have been heavy expenditures on the 
buildings in which the post-office stations are located that have 














PNEUMATIC-TUBE SYSTEM. 


285 


tube connections, and that in some cases it has been necessary for 
the company to tear out and rebuild partitions and floors, and make 
other alterations before the tubes and machinery could be installed. 

The statements made in this letter are I believe worthy of the 
attention of the commission, and should be given weight when the 
matter of intangible assets and past costs are considered. 

There is also transmitted an article marked “ Exhibit Za,” prepared 
by Mr. M. L. Emerson, manager of the American Pneumatic Service 
Co., dated November 15, 1912, and entitled, “ Would the installation 
of larger pneumatic tubes or automatic electric railway tunnels re¬ 
strict to any extent the further installation of 8-inch diameter 
pneumatic tube systems? ” 

The attention of the commission is respectfully invited to Mr. 
Emerson’s conclusions. 

Generally speaking, I agree with his statements as to the size of 
tube or tunnel to be used between different points. 

It is practically a question of cost both as'regards construction and 
operation, and I think it impracticable to lav down a hard and fast 
rule. 

Normally between postal stations I believe that the 8-inch tube 
sufficiently answers the purpose, both because of the elements of 
cost of construction and ease of operation. 

We have postal stations in all the large cities where it would be 
difficult and inconvenient to install, handle, and operate terminal 
mechanism for tubes larger than 8 inches. 

I believe that a s}^stem akin to that for which bids are now being 
taken in London, and which infers what is really a small tunnel 
trolley line with an automatically controlled, electrically propelled 
vehicle carrying, say, 200 pounds of mail matter, with a length of 
carrier of about 6 feet and a diameter of from 24 to 30 inches, would 
be found of great service between points like the Grand Central 
Station Depot and the New Pennsylvania Depot in New York City, 
and between depots of this character and general post offices in the 
great cities; but the expense of construction, which is likely to be 
from $300,000 to $400,000 per mile, and the physical difficulties that 
are likely to attend installation of this type in cities such as New 
York, Chicago, Boston, or Philadelphia, must be given due con¬ 
sideration, and will obviously limit this aid to the postal service for 
some years at least. 

Systems of the kind referred to, however, would have the great 
advantage of doing away with a vehicular transportation of mails, 
and thus help to lessen the congestion that is becoming so vital a 
question in our great cities. 

I shall be glad, on the request of the commission, to more fully cover 
any point discussed in this report, which I have tried to make as brief 
as the importance of the subject demands. 

In closing, I beg to state that the tube companies concerned have 
courteously given all information called for that it was in their power 
to furnish, and I desire to record my appreciation of the assistance 
rendered me by the Government engineers employed, my office, and 
others concerned in this work. 

Alfred Brooks Fry, 

Consulting Engineer. 


Data concerning pneumatic-tube companies. 


286 


PNEUMATIC-TUBE SYSTEM, 


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3 Fair; requires repairs. 

4 Includes power regulator royalties, $7,957.72. The Government might not have to pay these. 
Note.—F or estimated “value” of each system, see text of report for each city. 

































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hx&nf A 

MAP SHOWING PNEUMATIC MAILTUBE LINES 
IN NEW YORK,N.Y. 

AND PROJECTED EXTENSIONS THERETO 

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THE NORRIS PETERS CO WASH. * CTOtf . O. C 









































































































































































PNEUMATIC-TUBE SYSTEM. 


287 


EXHIBIT B, N. Y. & B. NO. 1. 

List of equipment, Feb. 5, 1913, New York Pneumatic Service Co. 

Note. —Where exact date of purchase or installation of mechanism or equipment is unknown, approx- 
mate date is stated as nearly as possible. Where cost was not ascertainable, column is left blank. 


SHOP EQUIPMENT. 

1 tube lathe No. 83. 

2 lathes (Eng. lathe No. 81; speed No. 84). 

1 large drill press No. 82. 

1 small drill press No. 85. 

1 milling machine No. 91.-. 

1 grinder No. 86 . 

Soldering apparatus. 

Shop tools.. 

Racks, carrier parts, machine parts, etc. 

Shop motor and starter No. 92. 

STREET EQUIPMENT. 

Force pumps, rods, picks, shovels, etc. 

Manhole covers, spare bends, closures, and other fittings. 

Emergency dutchmen (1 found). 

EQUIPMENT. 

Brooklyn—Station L. 

Terminals: 

1 sluice-gate closed receiver No. 7. 

1 gravity transmitter No. 6 . 

Brooklyn general post office. 

Terminals: 

2 sluice-gate open receivers Nos. 3 and 5. 

1 gravity transmitter No. 4. 

1 cradle transmitter No. 2. 

Power plant: 

2 75-horsepower Rand drill duplex steam compressors, Nos. 112-3, 
114-5. 

1 Laidlaw Dunn Gordon duplex steam compressor, No. 116-7. 

2 gauge boards... 

1 air receiver. 


New York general post office — 

Terminals: 

5 sluice-gate open receivers, Nos. 13,15,17,19, 21— 

3. 

2.;. 

3 cradle transmitters, Nos. 12,14,16. 

2 gravity transmitters, Nos. 18, 20. 

Power plant: 

2 75-horsepower Rand drill duplex steam compressors, Nos. 101-2, 
107-8. 

1 100 -horsepower Ingersoll duplex steam compressor, No. 105-6. 

3 sets direct-connected Connersville motor blowers, Nos. 109,110— 

2 . 

1 . 

1 set direct-connected Laidlaw duplex motor compressor, No. Ill.. 

4 panel boards. 

4 air receivers. 

1 Sprague 6-horsepower exhaust vent fan. 


Station P. 

Terminals: 

1 sluice-gate closed receiver, No. 9... 
1 gravity transmitter, No. 8 .. 


Wall Street Station. 


Terminals: 

1 wheel machine, i. e., selective combination receiver and trans¬ 
mitter, No. 1. 


Hudson Terminal Station. 

Terminals: 

1 sluice-gate closed receiver, No. 1. 

1 gravity transmitter, No. 420. 


Year in¬ 
stalled. 

Cost. 


$400 


500 


200 

190S-1910 

100 

500 


15 


50 


500 

1910-1912 

500 

1908 

250 

1908 

150 

1908 

200 

1908 

50 

1908 

950 (?) 

1908 

450 (?) 

1898-1908 

oo 

O 

05 P- 

1908 


1898 


1898 (?) 

16,000 

1908 (?) 
f 1898 

6,000 (?) 

\ 1908 


1898 


1898 


1908 


1898 

800 (?) 

1908 

720 (?) 

1898 

6,000 (?) 

1898 

6,500 (?) 

1908 

1912 

j-3,200 (?) 

1908 

5,200 (?) 

1908 

1898 


1908 

250 

1906 

950 (?) 

1906 

1906 


1908 


1908 



Condition. 


Good. 

Do. 

Excellent. 

Do. 

Do. 

Good. 

Do. 

Do. 

Do. 

Do. 


Good. 

Do. 

Do. 


Excellent. 

Do. 


1 good. 

1 excellent. 

Excellent. 

Good. 

Do. 

Do. 

Excellent. 

Do. 

Do. 


Fair. 

Good. 

Fair. 

Good. 

Do. 

Do. 

Do. 

Excellent. 

Good. 

Excellent. 

Good. 

Excellent. 


Excellent. 

Do. 


Good. 


Good. 

Do. 


1 Each. 





























































288 


PNEUMATIC-TUBE SYSTEM. 


List of equipment, Feb. 5, 1918, New York Pneumatic Service Co. —Continued. 


Station V. 

Terminals: 

1 revolving-valve closed receiver, No. 94. 
1 gravity transmitter, No. 92. 


Station A. 

Terminals: 

2 revolving-valve closed receivers, Nos. 89, 91. 


2 gravity transmitters, Nos. 88 , 90. 
Motor-driven time lock, No. 322.. 


Station 0. 

Terminals: 

3 revolving-valve open receivers, Nos. 81, 83, 85. 

3 gravity transmitters, Nos. 80,82, 84. 

1 motor time lock, No. 321. 

Power plant: 

3 direct-connected Connersville motor blowers, Nos. 124, 125, 126_ 

1 direct-connected Laidlaw duplex motor compressor, No. 127. 

3 Standard panel boards. 

1 combination automatic remote control panel board. 

3 air receivers... 


Station C. 

Terminals: 

1 sluice-gate closed receiver, No. 87 .. 
1 gravity transmitter, No. 86 . 


Station E. 

Terminals: 

2 sluice-gate closed receivers, Nos. 77, 79. 

2 gravity transmitters, Nos. 76, 78.. 

1 dashpot control. 


Times Square Station. 

Terminals: 

3 sluice-gate open receivers, Nos. 71,73,75: 

Two. 

One. 

3 gravity transmitters, Nos. 70,72,74— 

Two. 

One. 

2 motor time locks, No. 317. 

Power plant: 

2 direct-connected Connersville motor blowers, Nos. 139,140. 

2 direct-connected Laidlaw duplex motor compressors, Nos. 141,142. 

3 standard panel boards. 

1 combination automatic remote control panel board. 

2 air receivers. 

Terrazo floor in engine room. 


Station G. 

Terminals: 

2 sluice-gate closed receivers, Nos. 67, 69 

2 gravity transmitters, Nos. 66 , 68 . 

1 electric time lock.. 


Station G, operating office. 


1 roll-top desk. 

1 typewriter desk... 

1 flat-top desk. 

1 drawing case. 

Filing cabinets, chairs, etc. 

Typewriting machine, adding machine, etc. 

Station N. 

Terminals: 

1 sluice-gate closed receiver, No. 65. 

1 gravity transmitter. No. 64. 


Station W. 

Terminals: 

2 sluice-gate open receivers, Nos. 61, 63. 

2 gravity transmitters, Nos. 60, 62.,. 

Power plant: 

1 direct-connected Connersville motor blower, No. 129. 

2 direct-connected Laidlaw duplex motor compressors, Nos. 128,130. 

3 panel boards. 

1 air receiver. 

1 time lock.. 


Year in¬ 
stalled. 


1911 

1911 


19081 

1911 
1908 

1912 


1908 

1908 

1908 

r 1-1908 
l 2-1910 
1908 
1908 
1910 

1908-1910 


1909 

1909 


1908 

1908 

1908 


1908 

( 3 ) 

1908 

( 3 ) 


1909 

1909 

1909 

1909 

1909 

1909 


1908 

1908 

1908 


1908 

1908 


1908 

1908 

1908 

1908 

1908 

1908 

1908 


Cost. 


2 $1,713 (?) 
2 720 (?) 
200 (?) 


40 

40 

30 

40 

150 

250 


Condition. 


Excellent. 

Do. 


Excellent. 


Do. 

Do. 


Excellent. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 


Excellent. 

Do. 


Good. 

Do. 

Fair. 


Excellent. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 


Good. 

Do. 

Do. 


Good. 

Do. 

Do. 

Do. 

Do. 

Do. 


Excellent. 

Do. 


Excellent. 

Do. 

Good. 

Excellent. 

Good. 

Do. 

Do. 


Repaired. 


1 Each. 


3 Since 1908 





























































































PNEUMATIC-TUBE SYSTEM. 


289 


List of equipment, Feb. 5, 1913, New York Pneumatic Service Co.— Continued. 


Station H. 


Terminals: 

2 sluice-gate closed receivers, Nos. 57, 59. 
2 gravity transmitters, Nos. 56, 58.. 


Station l. 

Terminals: 

2 revolving-valve closed receivers, Nos. 95, 97. 

2 gravity transmitters, Nos. 94, 96. 

Station J. 

Terminals: 

2 sluice-gate open receivers, Nos. 53, 55. 

2 gravity transmitters, Nos. 52, 54. 

1 motor time lock. 

Power plant: 

2 direct-connected Connersville motor blowers, Nos. 131, 132.. 

1 direct-connected Laidlaw duplex motor compressor, No. 133 

2 standard panel boards.. 

1 combination automatic remote control panel board. 

2 air receivers. 


Station L. 

Terminals: 

1 sluice-gate open receiver, No. 49. 

1 sluice-gate closed receiver, No. 51... 

2 gravity transmitters, Nos. 48, 50... 

Power plant: 

2 direct-connected Connersville motor blowers, Nos. 134, 135. 

2 combination automatic remote control panel boards. 

1 auxiliary motor compressor set, No. 148. 

2 air receivers. 

1 auxiliary air receiver, No. 337. 

Station U. 

Terminals: 

2 sluice-gate closed receivers, Nos. 45, 47. 

2 gravity transmitters, Nos. 44, 46_ v .. 

Station K. 

Terminals: 

2 sluice-gate open receivers, Nos. 41, 43. 

2 gravity transmitters, No. 240,42. 

Power plant: 

2 direct-connected Connersville motor blowers, Nos. 136,137: 

One. 

One. 

1 direct-connected Rand duplex motor compressor, No. 138. 

1 Standard panel board.. 

2 combination automatic remote control panel boards. 

2 air receivers and 1 auxiliary tank. 

1 auxiliary motor compressor set, No. 147. 

1 36-inch 2 -horsepower exhaust fan. 

Station Y. 

Terminals: 

2 sluice-gate closed receivers, Nos. 37, 39. 

2 gravity transmitters, Nos. 36, 38. 

Grand Central Station. 

Terminals: 

3 sluice-gate open receivers, Nos. 31, 33, 35— 

Two. 

One. 

3 gravity transmitters, Nos. 30, 32, 34— 

Two. 

One. 

1 motor time lock. 

Power plant: 

3 direct-connected Connersville motor blowers, Nos. 143, 144, 145— 

Two. 

One. 

1 direct-connected Laidlaw motor compressor. 

2 Standard panel boards. 

2 combination automatic remote control panel boards. 

2 air receivers. 

1 carrier lift. 


Station F. 

Terminals: 

1 revolving-valve closed receiver. 

1 gravity transmitter. 


Year in¬ 
stalled. 

Cost. 

Condition. 

1909 


Fair 

1909 


Do. 

1912 


Excellent 

1912 


Do 

1908 


Excellent. 

1908 


Do 

1908 


Do 

1908 


flood 

1908 


Do. 

1908 


Excellent 

1908 


Do 

1908 


Do 

1910-11 


Excellent. 

1908 


Good. 

1908-1911 


Excellent. 

1910-11 


Do. 

1910-11 


Do. 

1911 

$400 

Do. 

1911 


Do. 

1911 

100 

Do. 

1908 


Excellent. 

1908 


Do. 

1910 


Excellent. 

1910 


Do. 

1908 


Do. 

1910 


Do. 

1910 


Do. 

1910 


Do. 

1908 


Do. 

1908 


Do. 

1910-11 


Do. 

1908 


Good. 

1910 


Excellent. 

1910 


Do. 

1908 


Fair. 

1910 


Good. 

1908 


Fair. 

1910 


Good. 

1912 


Excellent. 

1908 


Fair. 

1910 


Good. 

1908 


Excellent. 

1908 


Do. 

1908 


Do. 

1909 


Good. 

1908 


Do. 

1911 


Excellent. 

1911 


Do. 


78419—13—19 






















































































































290 


pneumatic-tube system. 


List of equipment, Feb. 5, 1913, New York Pneumatic Service Co. —Continued. 



Year in¬ 
stalled. 

Cost. 

Condition. 

Madison Square Station. 

Terminals: 

2 revolving-valve open receivers, Nos. 25, 27 . 

1911 


Excellent. 

2 gravity transmitters, Nos. 24, 26 . 

1911 


Do. 

1 motor time lock, No. 312 . . 

1912 


New. 

Power plant: 

2 Philadelphia Corliss duplex compressors, Nos. 118-9, 120-1. 

1 Rand duplex compressor, No. 122-3. 

2 air receivers. 

1898 

1908 

1898 


Good. 

Excellent. 

Good. 

Station D. 

Terminals: 

1 revolving-valve closed receiver, No. 23. 

1911 


Excellent. 

1 gravity transmitter, No. 22 . 

1911 


Do. 




Note.—N ecessary air piping, steam piping, auxiliary piping, electric wiring, tools, lockers, accessories, 
etc., go with each station, and are generally in good condition. 


Supplementary list, tubes, etc., Feb. 17, 1913, New York Pneumatic Service Co. 

Note.—W here exact date of purchase or installation of mechanism or equipment is unknown, approxi¬ 
mate date is stated as nearly as possible. Where cost was not ascertainable, column is left blank. 


Tubes, etc. 

Year installed. 

Cost. 

Condition. 

Length of tubing in use, including Brooklyn, 
54.2820 miles. 

Note. —Government is paying for use of 
only 54.2378 miles. 

The difference between “paid’’ and 
“used” mileage is as follows: 

1. 0.0121 mile added in alterations in 
Chambers and Pearl Streets for which an 
official order has not been given. 

2. 0.0092 mile in the Brooklyn Station L 
line, payment on which is limited by con¬ 
tract to a maximum of 1.35 miles, while ac¬ 
tual distance is 1.3592 miles. 

3. Increase in line at Station V due to 
moving machinery 0.0008 mile; total 0.0221 
mile. 

Street vaults, 112. 




< « 

Most of them 1908-1910_ 


Excellent. 

Fair. 

Standpipes, 58. 

1898. 


Sets of bends, 1,945. 



Closures, 1,335... 




Number of carriers, 1,500 per set; total, 3,000.. 



About one-third 
new, one-third 
fair, and the bal¬ 
ance excellent. 





Note.— Average age of all carriers: 8 months. 


EXHIBIT C, N. Y. & B. NO. 2. 

Pneumatic-tube stoppages during 1912.—Route 507011, New York, N. Y. 


Date. 

Stations. 

Duration. 

Cause. 

Jan. 6 

General post office, Wall 
Street, and P. 

4.25 a. m. to 5.15 a. m.; 7.10 
p. m. to 8 p. m. 

Part of machinery becoming dis¬ 
arranged at Wall Street Sta¬ 
tion. 

8 

V and A. 

6.30 p. m. to 7 p. m. 

Carrier lodged in receiving appa¬ 
ratus at Station V. 

8 

O and C. 

10.45 p. m. to 11 p. m. 

Carrier hitting gate of receiver at 
Station C. 

12 

General post office, Wall 
Street and P. 

6.20 to 6.52 a. m. 

Improper operating of machinery 
at the Wall Street Station. 

17-21 

J and H. 

7.55 p. m. to 8.20 p. m., Jan. 
17; 10.55 p. m., Jan. 17, to 
11 a. m., Jan. 21. 

Formation of ice in tubes, neces¬ 
sitating excavation in street. 






























































PNEUMATIC-TUBE SYSTEM. 


291 


Pneumatic-tube stoppages during 1912.—Route 507011, New York, N. Y. —Continued. 


Date. 

Stations. 

Duration. 

Feb. 4 

General post office, W all 
Street, and P. 

7.25 a. m. to 8.08 a. m. 

7 

General post office, New York, 
N. Y., and Brooklyn, N.Y. 

5 p. m. to 5.41 p. m. 

9 

H and J. 

2.30 p. m. to 5.35 p. m. 

11-13 

Times Square, G, and W. 

10.27 p. m., Feb. 11, to 1.20 
p. m., Feb. 13. 

14 

.do. 

11 a. m. to 2.30 p. m. 

28 

General post office, P, and 
Wall Street. 

7 p. m. to 7.35 p. m. 

Mar. 12 

Madison Square, D, and gen¬ 
eral post office. 

6.10 a. m. to 4.15 p. m. 

21 

General post office, P, and 
W all Street. 

7.18 a. m. to 8.18 a. m. 

21 

.do. 

11.25 a. m. to 11.50 a. m. 

23 

t 

General post office, V, and A.. 

3.15 p. m. to 3.50 p. m. 

25 

General post office and H. T.. 

7.55 p. m. to 8.18 p. m. 

Apr. 5 

General post office, P, and 
and Wall Street. 

8 p. m. to 8.45 p. m. 

20 

K and Y . 

9.55 a. m. to 10.20 a. m. 

24 

O and E. 

10.30 a. m. to 11 a. m. 

29 

.do. 

1.30 p. m. to 2.30 p. m. 

May 7 

General post office, V, and A. 

5 a. m. to 5.25 a. m. 

14 

Grand Central and Y. 

4.50 p. m. to 5.05 p. m. 

16 

General post office and Madi¬ 
son Square. 

5.15 a. m. to 5.50 a. m. 

17 

E and Times Square. 

6.30 a. m. to 6 42 a. m. 

18 

General post office, Wall 
Street, and P. 

2.32 p. m. to 3.27 p. m. 

22 

General post office and Hud¬ 
son Terminal. 

7.45 p. m. to 7.52 p. m. 

27 

Times Square and E. 

3.40 p. m. to 3.58 p. m. 

June 4 

7 

A and 0 . 

7.30 a. m. to 8.10 a. m. 

Grand Central and F. 

4 a. m. to 4.25 a. m. 

7 

E and Times Square. 

7.03 p. m. to 7.32 p. m. 

11 

Madison Square and Grand 
Central. 

8.12 a. m. to 8.32 a. m. 

19 

Times Square and E. 

10.45 p. m. to 11 p. m. 

24 

Madison Square and Grand 
Central. 

2.25 p. m. to 2.35 p. m. 

26 

General post office and Madi¬ 
son Square. 

4.45 a. m. to 6.35 p. m. 

26 

26 

Y and Grand Central . 

8.18 p. m. to 11 p. m. 

Madison Square and D. 

2.05 p. m. to 2.20 p. m. 

27 

E and Times Square. 

12.07 p. m. to 12.30 p. m. 

28 

Jqly 5 

O and C ... 

4 p. m. to 4.44 p. m. 

Madison Square and Grand 
Central. 

7.55 p. m. to 8.35 p. m. 

5 

General post office, V, and A. 

6 p. m. to 6.50 p. m. 

9 


8.32 p. m. to 8.50 p. m. 




Cause. 


Carrier sticking in the operating 
machinery at the Wall Street 
Station. 

Transmitter breaking at the gen¬ 
eral post office, New York. 

Formation of ice in line, necessi¬ 
tating excavation in street and 
building fire over tube. 

Formation of ice in tube in Sixty- 
second Street and Amsterdam 
Avenue, necessitating excava¬ 
tion and building fire over 
tube. 

Ice forming in tubes in Sixty- 
second Street and Amsterdam 
Avenue. 

Carrier sticking in line between 
Station P and the general post 
office. 

Carrier sticking in line. 

Carrier sticking in wheel machine 
at Wall Street Station. 

Machinery at Station P becom¬ 
ing disarranged. 

Carrier sticking in line. 

Do. 

Carrier becoming wedged in the 
tubes at the Wall Street Sta¬ 
tion. 

Carrier lodging in receiving ap¬ 
paratus at Station Y. 

Carrier sticking in line. 

Carrier riding on small piece of 
steel and blocking line. 

Carrier wedging in transmitter. 

Carrier sticking m receiving ap¬ 
paratus at Station Y. 

Piece of steel wedging under 
packing ring of carrier, thus 
blocking line. 

Carrier sticking in line. 

Faulty operation of wheel ma¬ 
chinery at the Wall Street 
Station. 

Carrier sticking in line. 

Disarrangement of receiving ap¬ 
paratus at Station E. 

Carrier striking receiving gate at 
Station A. 

Transmitter at Grand Central 
Station getting out of order. 

Carrier hitting gate at Times 
Square Station and lodging 
there. 

Carrier hitting gate of receiver at 
Grand Central Station. 

Carrier becoming damaged in 
transit between Times Square 
and E. 

Carrier becoming caught in ma¬ 
chinery at Grand Central Sta¬ 
tion. 

Carelessness of contractor for 
public sendee commission, per¬ 
mitting tube to sag. 

Disarrangement of operating ma¬ 
chinery at the Grand Central 
Station. 

Broken pipe at Park Place and 
Pearl Street. 

Carrier sticking in line. 

Carrier becoming damaged in 
line and dropping part of its 
cover mechanism. 

Carrier caught in receiving gate 
at the Grand Central Station. 

Carrier sticking in receiving ma¬ 
chine at Station A. 

Operating machinery at Station 
V becoming disarranged. 




















































9 

13 

19 

20 

26 

1 

1 

7 

1-8 

14 

27 

28 

29 

2 

5-4 

4 

4 

5 

9 

13 

18 

19 

20 

21 

23 

24 

24 

25 

25 

25 

26 

26 

27 

30 

4 

4 

5 


PNEUMATIC-TUBE SYSTEM. 


ic-tube stoppages during 1912.—Route 507011, New York, N. Y. —Continued. 


Cause. 


Carrier sticking in line. 


Stations. 


General post office, New 
York, N. Y., and Brook¬ 
lyn, N. Y. 

Land U. 


General post office, Wall 
Street, and P. 

K, U, and L. 


Madison Square, D, and gen¬ 
eral post office. 

Grand Central and Times 
Square. 

V and A. 

General post office, Wall 
Street, and P. 

Times Square and G. 

W, N, and G. 

General post office, Wall 
Street, and P. 

_do. 

_do. 

General post office, V, and A.. 


General post office, W r all 
Street, and P. 

Grand Central, F, and Madi¬ 
son Square. 

V and A. 

General post office, V, and A. 

Times Square and E. 

General post office, V, and A.. 


_do. 

_do. 

Madison Square, D, and gen¬ 
eral post office. 


Madison Square, D, and gen¬ 
eral post office. 


_do. 

_do. 

_do. 

_do. 

_do. 

A and general post office. 

General post office, Wall 
Street, and P. 

Madison Square, D, and 
general post office. 


General post office, V, and A.. 

_do. 

General post office and Hud¬ 
son Terminal. 

Madison Square, D, and gen¬ 
eral post office. 


D and general post office. 


Duration. 


12 m. to 12.23 p. m 


6 a. m. to 6.25 a. m 


7.55 p. m. to 8.25 p. m.; 9.25 
p. m. to 10.10 p. m. 

2.30 p. m. to 4 p. m. 


8.10 p. m. to 9.35 p. m. 

8.42 p. m. to 9.05 p. m. 

9.50 p. m. to 10.20 p. m. 

3.45 p. m. to 4.15 p. m. 

5.25 p. m., Aug. 7, to 12.45 
p. m., Aug. 8. 

11.15 a. m. to 12 m. 

3.30 p. m. to 4 p. m. 

6.45 p. m. to 7.07 p. m. 

5.15 p. m. to 5.42 p. m.; 6.52 
p. m. to 7.20 p. m. 

3.28 p. m. to 3.46 p. m. 


12.30 p. m. Sept. 3, to 7 p. m., 
Sept. 4. 

8.30 a. m. to 8.53 a. m. 

4 a. m. to 4.50 a. m. 

1.50 p. m. to 6.10 p. m.; 6.20 
a. m. to 8.20 p. m. 

7.15 p. m. to 7.30 p. m. 

4.40 a. m. to 5.50 a. m. 


8.30 a. m. to 9.05 a. m. 

4.35 p. m. to 4.50 p. m.; 5.05 
p. m. to 5.50 p. m. 

6.15 a. m. to 6.30 a. m. 


4.35 p. m. to 4.55 p. m 


8.10 p. m. to 8.55 p. m. 

2.35 p. m. to 3.45 p. m. 

8.05 p. m. to 9.05 p. m. 

6.50 p. m. to 7.10 p. m. 

10.30 a. m. to 11.55 a. m. 

4.55 a. m. to 5.25 a. m. 

1.25 p. m. to 1.45 p. m. 

10.25 a. m. to 10.45 a. m.; 

12.30 p. m. to 1 p. m.; 4.30 
a. m. to 5.58 p. m. 

7.45 a. m. to 8.55 a. m. 

9.10 a. m. to 10.30 a. m. 

7.30 p. m. to 7.45 p. m.; 8.30 
a. m. to 8.40 a. m. 

9.50 a. m. to 10.35 a. m. 


1.28 p. m. to 1.58 p. m.; 10.24 
p. m. to 10.34 p. m. 


Carriers in transit riding onto 
one another and blocking oper¬ 
ation of receiving machinery 
at Station U. 

Carrier sticking in line. 

Broken tube at One hundred 
and twenty-fourth Street and 
Lexington Avenue, caused by 
open cut of subway contract¬ 
ors. 

Packing ring of carrier breaking 
while in transit. 

Break m machinery at Times 
Square Station. 

Carrier sticking in machinery at 
Station A. 

Carrier sticking in line. 

Carrier opening in transit. 

Carrier hitting gate of receiving 
machine at Station N. 

Carrier sticking in line. 

Do. 

Do. 

Carrier spreading its packing ring 
between general post office and 
Station V. 

Broken joint in tube line in South 
William Street. 

Carrier hitting gate of machine 
at the Madison Square Station. 

Carrier lodged in receiving ma¬ 
chine at Station A. 

Carrier sticking in line. 

Carrier lodged in receiving ma¬ 
chine at Station E. 

Carrier sticking in line between 
general post office and Station 
V. 

Do. 

Carrier sticking in line. 

Careless treatment of pneumatic- 
tube line on open subway loop 
cut between Park and Pearl 
Streets and Chambers and Cen¬ 
tre Streets. 

Careless treatment of line over 
public service commission ex¬ 
cavation at Centre and Duane 
Streets. 

Do. 

Do. 

Do. 

Do. 

Do. 

Carrier sticking in line. 

Do. 

Careless treatment of line over 
public-service commission ex¬ 
cavation at Centre and Duane 
Streets. 

Foreign matter finding its way 
into tube and stopping carrier. 

Carrier sticking in line. 

Broken pipe at general post 
office. 

Careless treatment of pneumatic- 
tube line over public-service 
commission excavation at Cen¬ 
tre and Duane Streets. 

Do. 





















































PNEUMATIC-TUBE SYSTEM. 293 

Pneumatic-tube stoppages during 1912—Route 507011 , New York, N. Y— Continued. 


Date. 

Stations. 

Duration. 

Cause. 

Oct. 12 

A and O. 

8 a. m. t,o 8.20 a, m 

Pflrripr stiolrin^ in linp 

26 

E and Times Square. 

3.55 p. m. to 4.30 p. m 

Oneratinv maehinprv at. epneral 




post office becoming disar- 




ranged. 

9 

General post office, V, and A.. 

8.40 p. in. to 9.20 p. m. 

Sticking of carrier in line. 

10 

Madison Square, D, and gen- 

12.21 p. m. to 12.46 p. m. 

Do. 


eral post office. 



19 

.do. 

7.45 a. m. to 8.05 a. m . 

Do. 

Nov. 1 

Grand Central and F. 

9.28 p. m. to 11 p. m. 

Do 

3 

Madison Square, D, and gen- 

7.30 a. m. to 7.45 a. m. 

Repairs to line. 


eral post office. 



6 


9.15 p. m. to 9.55 p m 


7 

.do. 

8.50 p. m. to 10.35 p. m 

Do 

7 

Times Square and G; also be- 

5.40 a. m. to 6.10 a. m.; 5.40 

Carrier damaging part of operat- 


tween Stations G,N,and W. 

a. m. to 6.35 a. m. 

ing mechanism. 

8 

Madison Square, D, and gen- 

4.26 a. m. to 4.48 a. m. 

Carrier sticking in line. 


eral post office. 



12 


4.29 a. m. to 5 a. m.; 6.53 

Do. 



a. m. to 8.20 a. m. 


13 

.do. 

9.12 a. m. to 9.55 a. rn 

Do 

22 

General post office, New 

4 a. m. to 5.55 a. m. 

Alterations to line running across 


York, N. Y., and Brooklyn, 


Brooklyn Bridge. 


N. Y. 



23 

0 and C. 

4.10 a. m. to 7.55 a. in.; 9.45 

Foreign matter finding its way 



a. m. to 10 a. m. 

into tube and blocking carrier. 

23 

K and Y. 

1 p. m. to 1.28 p. m. 

Carrier striking receiving gate at 




Station Y and damaging it. 

Dec. 7 

Times Square and G; also 

5.40 a. m. to 6.10 a. m.; 5.40 

Carrier sticking in line. 


Stations G, N, and W. 

a. m. to 6.35 a. m. 


23 

Times Square and E. 

11.50 a. m. to 12.10 p. m. 

Do. 


EXHIBIT C, N. Y. & B. NO. 3. 

Post Office. Brooklyn. N. Y., 

Executive Division, 

Office of the Postmaster, 

February 14, 1913. 

Mr. Alfred Brooks Fry, 

Supervising Chief Engineer, United States Public Buildings, New York, N. Y. 

Sir: With respect to your call at this office on the 13th instant, relative to the 
pneumatic-tube system installed in this office, 1 have to respectfully report that the 
pneumatic tube has not had any stoppages for any cause whatsoever during the past 
six months. 

Complaints have been made to the company relative to low pressure on the pneumatic 
tube and the company have responded by increasing the air pressure accordingly. 

The stoppages on the pneumatic-tube service average about two a year and they 
are of short duration. 

At the present time there is no complaint whatsoever regarding the pneumatic- 
tube service. 

Respectfully, E. W. Voorhies, 

Postmaster. 


EXHIBIT D, N. Y. & B. NO. 4. 

On Sunday morning, February 16, 1913, previous arrangements having been made 
and excavation performed, there were taken out, under direction of the chief engineer 
of the New York Pneumatic Service Co., two lengths of 8-inch pneumatic tube and 
also one cast-iron bend, No. 222, from a location on Washington Street immediately 
opposite the westerly extension of the Brooklyn post office, the tube parts removed 
forming part of the line between the general post office, New York, and the general 
post office, Brooklyn, said line running via Brooklyn Bridge. 

The bend named is reported to have been installed in 1907. The straight lengths 
taken out are reported to have been installed, and I believe were installed, as part of 
the original line between the said general post offices, which was put in service in 1898. 

The ground in location where tubes were dug out consists chiefly of sand mixed 
with some loam, clay, and gravel; above the tubes it was generally rather porous. 
The depth from base of pavement to the top of the tubes was about 4 feet 6 inches. 







































294 


PNEUMATIC-TUBE SYSTEM. 


The pavement in this place consists of worn Belgian blocks laid in sand and gravel 
and-without any other foundation. 

Internally the bend taken out showed wear on the outer side of the'curve amounting 
to 0.0312 inch. The straight portions of the tube showed in some places an observable 
rather than a measurable wear, the maximum variation between horizontal and 
vertical dimensions being 0.007 inch. 

The bend was almost altogether unrusted on the outside and was not pitted or 
corroded; in fact, most of the original black coating on the cast iron still remained. 

On the straight lengths the black coating remained visible on a portion of the long 
length. Other portions of the long length and much of the short length were more 
or less covered with scale consisting, apparently, of oxide of iron and clay, though, 
the body of the pipes was not badly corroded. 

Drilling said pipes where the pitting or rust seems to have been the greatest indi¬ 
cates a minimum thickness of 0.415 inch, against what was probably the original 
thickness of 0.5625 inch. 

On the bottom of the west length of pipe removed, and toward its westerly end, 
there was little or no rusting, some of the black surfacing still remaining in place, 
notably on the bottom; but there was considerable pitting, indicating electrolytic 
action. 

A double trolley track passes parallel to these tubes and is laid with the nearest rail, 
say, from \\ to 5 feet away from the nearest point of pipe. 

Over that portion of the tube where the electrolytic action appears to have occurred 
there runs at right angles a lead-covered conductor to an arc street light and an iron 
conduit, containing electric conductors, running into a dry-goods shop opposite the 
Brooklyn post office; and since here the Belgian-block pavement is considerably 
worn, is laid without any concrete or other waterproof foundation, and on soil rather 
pervious it is entirely possible that in continued wet weather there may have been, 
and may be, more or less passage of stray currents between these cast-iron tubes and 
the trolley tracks, or between said tubes, the lead-protected conductor to the arc lamp, 
or electric lighting mains incased in the iron conduit heretofore described. 

Of course, if there was any passage of stray current between the pneumatic-tube 
lines and the electric conduits heretofore named, the source would seem to be largely 
through induction, since there could not be anything approaching a serious ground 
in the said electric conductors to the arc lamp or to the dry-goods shop without 
causing noticeable trouble. 

It is quite probable that unless we have pneumatic mail tubes laid in some per¬ 
manently wet location, or where there is a possibility of deterioration from chemicals, 
or severe electrolytic action, these samples taken out in this Brooklyn line may be 
fairly regarded as typical of their age. 

Owing to the pervious character of the pavement and of the soil, in wet or rainy 
weather there is undoubtedly considerable free ammonia from horse droppings and 

alings washed down through the earth and around these tubes, but in most cities 
this condition would be rather abnormal, because nowadays there is usually laid 
impervious pavements. 

My opinion in this respect seems to be borne out by the conditions found in tube 
sections removed from the Station P line, New York, and examined the same after¬ 
noon, description of wffiich follows: 

On the afternoon of Sunday, February 16, 1913, the necessary previous arrange¬ 
ments having been made and excavation performed, there was taken out, under the 
direction of the chief engineer of the New York Pneumatic Service Co., one long 
length, one short length, and one section of a bend, in South William Street, near 
the junction of William Street, from the postal Station P line, which originally ran 
between the Produce Exchange and the New York general post office and was sub¬ 
sequently extended from the Produce Exchange to said Station P when said station 
was removed from the Produce Exchange to the customhouse, New York. 

The bend referred to was installed in 1907. The long and the short section of 
piping were installed in 1897-98 and formed part of the original Station P line. 

As regards internal condition, the bend showed slight wear on the outer side of the 
curve, said wear, judging by portions of the bend where there seemed to have been 
no bearing, amounting to, say, 0.03 inch. In straight tubes evidences of wear 
appeared slight. Externally, both lengths of pipe removed seemed in considerably 
better condition than the lengths taken out from the front of the Brooklyn post office. 
There was little rust or scale. There was no marked corrosion and no evidences of 
electrolytic action. 

These pipes are buried about 3 feet 6 inches from the top of the pipe to the lower 
concrete base beneath the pavement, which in this location is asphalt. The soil is 
sand, mixed with cellar dirt and fill, and the location rather damp. The tubes pass 


PNEUMATIC-TUBE SYSTEM. 


295 


through the side of a sewer brick manhole, but not near any electric conduit or any 
other piping. The soil in which tubes in this location were laid is more or less imper¬ 
vious to rainfall or melting snow, from the fact that in said location the said soil above 
tubes has over it some remaining portions of a concrete- foundation that probably 
was under the original Belgian block pavement on South William Street, and this 
concrete foundation has again over it a concrete bed from 4 to 5 inches thick, on 
which there is from 2 to 3 inches of asphalt. 

Hence the noted somewhat damp condition of the soil is probably due to the low 
grade of this street as compared with high water, it being probably not over 8 feet 
above same. 

I may sum up this memorandum on the sections of tube taken out by saying that 
probably the Brooklyn tube will stand continuous operation for a period of 15 years 
unless the supposed electrolytic action becomes more violent, and the Station P or 
South William Street tube would seem to be able to remain in service for 15 years 
more or upward unless some new factors are introduced with reference to external 
corrosion or internal wear. The question is practically that of external corrosion, 
not internal wear, which, particularly in the straight portions, is almost negligible 
after, say, 14 years’ service. 


EXHIBIT E, N. Y. & B. NO. 5. 

New York City, February 24, 1913. 

A. B. Fry, 

Supervising Chief Engineer, United States Public Buildings, New York City. 

Sir: In accordance with your instructions I have examined all power plants, shop 
and office equipments, tools, etc., property of the New York Pneumatic Service Co., 
and submit herewith report, including schedules of machinery, etc. 

The power-plant apparatus has been kept in first-class repair and is generally in 
good condition; the small parts of valve gears of steam-driven compressors show wear 
and some lost motion, but renewal of these parts can be made at small expense, after 
which the machines will be practically as good as new. 

Likewise the gears on the older Connersville blowers are partially worn but good 
for much future service. 

All of the steam and motor driven compressors are of much larger capacity than the 
daily load demands, due to the reserve capacity necessary in case of stoppage of a car¬ 
rier in transit through the tubes, which overcapacity provides large parts and wearing 
surfaces and prolongs the life of the apparatus. 

The motors, wiring, control panels, switches, etc., are in excellent condition and by 
reason of their reserve capacity show very little effect of past service. 

The receiving and transmitting machinery is not materially worn in the main parts, 
and the wear on small parts, such as trip devices, time dashpots, valves, etc., is not 
serious. It has been the practice of this company to renew these parts from time to 
time, thereby keeping the apparatus in a condition equal to new. 

The air and steam piping, auxiliary piping, station wiring, tools, lockers, accessories, 
etc., are complete in each power station and in fair condition. 

The following pieces of pipe removed from the New York & Brooklyn tube line 
were examined and measured with micrometer gauge for variations due to wear: 


Location. 

Date 

in¬ 

stalled. 

Variation 
between 
horizontal 
and ver¬ 
tical diam¬ 
eters. 

Full-length pipe from front Brooklyn post office. 

1898 

1898 

Inches. 

0.006 

.007 

Short-length pipe from in front Brooklyn post office (next to bend). 



The long piece was badly pitted on the exterior, undoubtedly due to electrolysis; 
the deepest pit was drilled and was found to have a depth of 0.16 inch below the 
surface. The solid metal between bottom of pit and interior bore of pipe measured 
0.415 inch, which left ample metal for continuous use of this section for another 
period of 20 years. The pipe examined has an average thickness of 0.5625 inch 
and none of it was scored or showed ridges due to wear by carriers, but on the con¬ 
trary had a smooth polish on the interior. 

















296 


PNEUMATIC-TUBE SYSTEM. 


Sections removed recently from the New York tube lines "were also examined, 
but no material wear or other depreciation which would injure its usefulness were 
found. 

These tubes can be purchased at the price of $2.50 per running foot, bored accurately 


to gauge. 

A trip was made over the entire tube lines in place in New York and Brooklyn 
and some 52 manholes and 6G odd standpipes were examined. 

All manholes are constructed of concrete and brick, capped with heavy cast-iron 
frames and covers, set flush with street grade, and were found in excellent condition 
as to construction and accessibility and closures or bends were found in practically 
every one, including also test pipes for determining the location of stoppages in lines 
when occurring. 

The standpipes are brought up to within 8 to 12 inches of the surface of street, 
protected by brick inclosures and capped with heavy cast-iron frames and covers. 
These were all in good condition except the covers, which in many cases are worn or 
have broken corners, due to the heavy street traffic. These covers are worth about 
75 cents apiece; hence the renewal cost is a minor item. The standpipes are found 
mostly below the numbered streets in New York and on the approaches at both sides 
of the Brooklyn Bridge. 

It was not possible to check the number of closures and bends, as most of these 
are buried, inaccessible, and the correct number could only be found from the plans 
showing the details of the street lines. 

Likewise the number of carriers could not be checked with any reasonable accu¬ 
racy, as they are continually in transit. Several hundred new ones are in. stock 
at the Grand Central plant and from 30 to 100 were seen at each sending and receiving 
station. 

These carriers are said to last about 12 months and a fair average of life may be 
taken at 8 months; repair to the packings and latches prolongs life and usefulness 
and does not involve large expense in materials, labor, or equipment. 

In conclusion it may be stated that the power machinery, tools, and engine rooms 
were found to be clean and well kept, and material depreciation by reason of daily 
wear has been largely offset by renewals and repairs from time to time. 

Respectfully, 


David F. Atkins. 


EXHIBIT F, N. Y. & B. NO. 6. 

Memorandum of General Expenses in the Development and Construction 
of the Pneumatic Mail Tubes. February 24, 1913. 

The following is a memorandum of some of the more important expenses of the 
pneumatic-tube companies that were necessary in the development and construction 
of the mail-tube systems, but which are not included in the actual work of construction. 
They form no part of the cost of material and labor directly involved in the work, and 
may therefore be classified as general miscellaneous expenses. They do not include 
the usual “overhead ” charges, such as salaries of officers, office expenses, etc. They 
make up the difference between the cost of the tube systems represented in material 
and labor and their cost as it appears on the books of the company: 

development and experiments. 

In the 20 years that have elapsed since the first mail tube was laid in Philadelphia, 
large sums of money have been expended in experiments and development covering 
such features as tubes, bends, transmitters, time locks, receivers, compressors, carriers, 
and numerous minor details. It is within the past five years that what may be termed 
standard types of apparatus have been adopted. Improvements will, of course, con¬ 
tinue to be made so long as tubes are used, but probably they will be of minor impor¬ 
tance. 

Some of the development is included in the construction cost of the later lines, but a 
large part of it comes under the head of general miscellaneous expense. To give 
several specific examples: An experimental air compressor was constructed and 
tested at a cost of several thousand dollars, with the result that it was relegated to the 
scrap pile. A demonstration line of tubes was constructed in Chicago and another at 
Lowell, Mass., each at a cost of thousands of dollars; they served a useful purpose 
and were then consigned to the scrap pile, so do not appear to-day as a part of the mail- 
tube systems. Only recently nearly $15,000 has been expended on a demonstration 



PNEUMATIC-TUBE SYSTEM. 


297 


plant in Cambridge, Mass., to show the practicability of a 30-inch tube operated 
electrically. A great many forms of carriers have been made and tested, with knowl¬ 
edge and experience as the sole compensation. The item of foundry patterns that 
have become obsolete would be surprisingly large if it were known. Antiquated 
styles of tube fittings have been carried for years in the stock of store yards, to be 
finally disposed of to the junk dealer. 

While there has been great development in the years gone by, the pneumatic-tube 
system is no longer in the “experimental stage.” The tubes and apparatus have been 
standardized. Their efficiency and durability are indicated by the few interruptions 
in the service and the approach of the operating expense curve to horizontal. 

FRANCHISES. 

The securing of franchises in each of the cities where pneumatic tubes have been 
laid has involved considerable expense which does not appear under this heading 
on the books of the company. Therefore the exact amount can not be stated. It 
necessarily includes lawyers’ fees and expenses. 

The franchise under which tube lines were laid in New York City was secured by pur¬ 
chasing a controlling interest in the New York Mail & Newspaper Transportation Co., 
which company owned a charter granted by the State of New York. Control of this 
company was obtained by a payment of cash and an exchange of its securities for the 
securities of the American Pneumatic Service Co. The New York Mail & News¬ 
paper Transportation Co. had, besides its charter, a valuable asset in its pneumatic- 
tube line extending from the general post office ip New York to the general post office 
in Brooklyn, so that it is impossible to say what part of the purchase price should be 
credited to its charter that included franchise rights to lay tubes in the streets of cities 
within the State. 

Franchise rights in the city of Boston came to the American Pneumatic Service 
Co. through its purchase or control of two subsidiary companies, so that again it is 
impossible to determine the exact cost of the franchise by an examination of its books, 
but it is safe to say that the cost was real and considerable. In Chicago a cash payment 
of $50,000 was made to the city. 

Whether or not these franchises have any real value to the Government in case of 
Government ownership of the tubes, the fact remains that they did cost the American 
Pneumatic Service Co. a considerable sum in either cash or securities that stand as a 
liability until redeemed. 

LEGAL EXPENSE. 

All corporations doing business at the present day require more or less legal advice 
and legal services in the drawing of numerous papers that are required in the conduct 
of their business. Therefore the item of legal expense becomes a considerable one 
in the total expense of the company. It is an expense that varies, but can not be en¬ 
tirely avoided, and is as necessary as any other expense which the companies have to 
incur. From time to time the companies have been obliged to defend themselves 
in court, and this necessitates unusual legal expense. These expenses come under 
the head of “General miscellaneous expense.” 

PATENTS. 

During the development of the system, as already pointed out, many new devices 
have been designed which have been made the subject of United States patents. 
The American Pneumatic Service Co. at present owns 137 patents. Through two of 
its subsidiary companies it owns 7 additional. It holds a license to use 33 patents of 
the Batcheller Pneumatic Tube Co., 20 patents of the Pearsall Pneumatic Tube & 
Power Co., and 2 patents granted to Bemis. 

It is impossible for anyone to say exactly what the obtaining of these patents has 
cost the American Co., but I will venture to estimate the cost of the 137 which it owns 
outright at a sum not less than $50,000. The cost of the license to use the Batcheller 
and Pearsall patents was a considerable sum in cash and securities of the American 
Pneumatic Service Co. 

The patent rights have materially aided in the development of the tube system, 
which justifies the expense. This is a part of the general miscellaneous expense of 
the system. 

INTEREST. 

In order to construct the tube systems in the various cities, capital has been raised 
by the sale of stocks, bonds, and other obligations. During the construction of tube 
lines, and up to the time sufficient income is received from their operation, the com- 


298 


PNEUMATIC-TUBE SYSTEM. 


pany must pay the interest on the bonds and notes (or stock, if the same is guaranteed), 
which interest is properly charged to the cost of the tube system. This expense ceases 
when the income from the tube system exceeds the operating expenses by an amount 
equal to the fixed charges. 

In the case of the New York Co., from November 1, 1906, to March 31, 1912, the 
amount of interest so charged to the cost of the system was $193,242; in Boston it was 
$72,150.56; in Chicago, $50,093.77; and in St. Louis, $38,472.24. 

COST OF OBTAINING'CAPITAL. 

The cost of obtaining capital for any enterprise is in direct ratio to the amount of 
risk involved. The risk in the case of the pneumatic mail tubes has been very large, 
especially in the early days of its development. Even under the present 10-year con¬ 
tract there is no assurance that the contract will be renewed at the end of the 10-year 
period, and if it is not, or the tubes are not taken over by the Government, practically 
the entire investment will be lost. 

Under these circumstances a large commission, or what is equivalent to a commis¬ 
sion, must be paid to the bankers to underwrite the securities, in case they are not pur¬ 
chased by the stockholders. In the case of the first preferred stock, this was offered 
to the stockholders at par, but only 5 per cent of the $1,500,000 was disposed of in this 
way, showing it is impossible to sell the company’s stock at its par value. 

In some previous cases a share of preferred ($50 par) and a share of common ($50 
par) were sold for $50, but the company has obligated itself to the amount of $100. Call 
this difference water, or whatever one pleases, it was the only terms upon which capital 
could be raised at that time. The $1,500,000 first preferred 7 per cent stock of the 
American Pneumatic Service Co. was underwritten by bankers at 93. In this case 
the company paid 7 per cent, or a total sum of $105,000, to obtain its capital for tube 
construction. In the early days an even higher price was paid. Since the capital 
stock is a liability, the cost of obtaining it is a part of the cost of the tube system. 

ORGANIZATION EXPENSES. 

Owing to the fact that franchises are only granted to local organizations, it has been 
necessary to organize local companies in each of the cities where the tube systems 
have been constructed. The organization of these companies involved more or less 
expense, which is a part of the cost of the systems. 

In New York City, the first company organized, the Tubular Dispatch Co., went 
into bankruptcy; the second company, the New York Mail & Newspaper Transporta¬ 
tion Co., defaulted on its Government contract, which necessitated the organization 
of a third company, the present New York Pneumatic Service Co. In Boston two 
local companies have by necessity been organized; in Chicago two; and in St. Louis 
one. In order to control all these companies by a single organization, the parent, or 
American Pneumatic Service Co., came into existence. 

COST OF SECURING GOVERNMENT CONTRACTS. 

This heading may sound a little anomalous, but it none the less represents a real 
expense. While the Government has finally come to realize the value of the pneu¬ 
matic-tube service in the transportation of its mails, it by no means recognized that 
value from the beginning; and were it not for the confidence of the promoters of the 
enterprise in its ultimate success there would have been no systems of underground 
mail tubes to-day. In order to bring these systems into existence it was necessary 
for representatives of the companies to go to Washington and interview officials of 
the Post Office Department and Members of Congress to (first) secure the necessary 
appropriations and to (second) obtain the contracts for the transportation of the mails. 
These expenses were absolutely necessary, for if they had not been incurred there 
would have been no tube systems. Therefore they must be considered as a legitimate 
part of the expense of developing the enterprise. 

DEFICIT DURING THE EARLY YEARS OF OPERATION. 

During the first few years that the contracts with the Government were in force 
the revenue obtained from the tubes was not sufficient to pay the operating expenses. 
The companies were therefore obliged to supply this deficit by the issuing of notes 
lor the amount of the deficit, which it is hoped will be paid in full in the future. 


PNEUMATIC TRANiSIT COMPANY. 
PHILADELPHIA, PA. 

FEB. I st 1911. 

> 









































































































PNEUMATIC-TUBE SYSTEM. 


299 


ABANDONED TUBE LINES. 

The company has suffered a considerable loss by the compulsory abandonment of 
portions of its lines when the Government changed the location of post-office stations 
that had tube connections. The cost of moving the tube equipment from one location 
to another was charged against operating expense, but the lines and the original equip¬ 
ment of the stations had already been capitalized, so that their abandonment was a 
direct loss that must be added to the cost of the lines now in operation. 

In Boston A and Back Bay stations were moved. In New York stations Y, A, O, 
F, D, P, and Madison Square were each moved once and Grand Central twice. 
Station E is about to be moved to the new post office. In Chicago stations Armour 
and Twenty-second Street were moved, temporary post office and Wells Street were 
abandoned, tube line through La Salle Street Tunnel was destroyed, and Kinzie 
Station is soon to be moved to Chicago Avenue. In St. Louis Annex Station was 
moved to the new general post office. 

I estimate roughly that these changes of location of post-office stations have cost 
the companies about $193,342 by the abandonment of what was revenue-producing 
equipment, to say nothing of the expense incident to the change. 

This is a much larger item than was anticipated by the companies, and probably by 
the Government, when the contracts were entered into. It properly comes under the 
head of general miscellaneous expense. 

American Pneumatic Service Co., 

——-, Chief Engineer. 


EXHIBIT G, N. Y. & B. NO. 7. 

American Pneumatic Service Co., 

Boston, March 1, 1913. 

Alfred Brooks Fry, 

Consulting Engineer, 121 Customhouse Building, New York City. 

Dear Sir: I acknowledge the receipt of your letter of February 28 in which you 
transmit an equipment list, dated February 5, 1913, of the New York Pneumatic 
Service Co., with the request that we, so far as possible, immediately fill in the cost 
column of this list and return it to you. 

It is in most instances an impossibility to give you the actual cost of this equipment, 
first, because in many instances we made them, either in whole or in part, in our own 
shops and in odd lots, for which reason the manufacturing cost, transportation expenses, 
engineering, inspection, and overhead expenses are spread over groups of different 
pieces and not on individual pieces; and, secondly, because where we bought from 
manufacturers—as, for example, motors, panel boards, etc.—this equipment was 
bought in lots of five or six motors of different sizes, and five or six panel boards to go 
with the motors, the prices in no instance being separated. 

We are very glad, however, to give you all the detailed information which we can 
obtain. We are, therefore, requesting Mr. Batcheller, our chief engineer, to fill in this 
list as far as possible from data which he has in New York, and from information which 
he can obtain in Boston. 

Respectfully, yours, Wm. H. Ames, 

President. 





300 


PNEUMATIC-TUBE SYSTEM. 


EXHIBIT I, PHILADELPHIA NO. 1. 

Inventory of Pneumatic Tube Lines and Other Property Owned by the 

Pneumatic Transit Co., February, 1913. 

The pneumatic-tube lines of the Pneumatic Transit Co. are (February, 1913) as 
follows: 


1. Double 6-inch line connecting the Bourse Building, Fourth and Chestnut Streets, 

with the central post office, Ninth and Chestnut Streets, 1893 .. 

2. Double 8-inch line connecting central post office with Broad Street Station. Fif¬ 

teenth and Market Streets, 1898.. 

3. Double 8-inch line connecting central post office with Reading Terminal, Twelfth 

and Market Streets, 1909.,. 

4. Double 8-inch line connecting central post office with Station S, Sixth and Fair- 

mount Avenue, 1906.... 

5. Double 8-inch line connecting Station S with Station O, Tenth and Columbia Ave¬ 

nue, 1906. 

6. Double 8-inch line connecting Station O with Fairhill Station, Lehigh Avenue and 

Hutchinson Street, 1910. 

7. Double 8-inch line connecting Fairhill Station with North Philadelphia Station, 

Broad and Glenwood Avenue, 1910. 

8. Double 8-inch line connecting Broad Street Station with Station J. Nineteenth and 

North Streets, 1908. 

9. Double 8-inch line connecting Station J with Station C, 1921 Oxford Street, 1908- 

10. Double 8-inch line connecting central post office with Station Southwark, Tenth 

and Washington Avenue. 1908. 

11. Double 8-ineh line connecting Souttnvark Station with Station D. Eighteenth and 

Christian Streets, 1908... 


Length. 

Present 

condition. 

Miles. 

0.560 

Good. 

.7267 

Do. 

. 27S5 

Do. 

1.4110 

Do. 

1. 2100 

Do. 

1.1750 

Do. 

.6230 

Do. 

1.2457 

Do. 

. 8825 

Do. 

1.0155 

Do. 

.872 

Do. 


Total mileage 


9.9999 


Laid with these tube lines there are the following conduit and manholes: 


4-duct vitrified-clay conduit incased in 3-inch concrete casing... .miles.. 6. 0 

6-duct vitrified-clay conduit incased in 3-inch concrete casing.do_ 2.5 


177 manholes, 9-inch brick walls, concrete bottom, reenforced-concrete roof; 

average size inside 4 feet 6 inches wide by 6 feet 6 inches deep. 

Owing to the difficulty of financing the construction of these lines (due to the 
fact that the contracts were not of sufficient duration to assure the repayment of 
the principal) most of them were built for round sums in stock under contract. 

The cost of the line Broad Street to Stations J to 0 is, however, accurately known 
to have been as follows: 


Broad Street Station. $20,141. 89 

Station J. 24, 680. 93 

Station C. 14,947.96 

Line. 102, 378. 95 

Equipment (carriers, etc.). 2, 200. 00 

Plans, inspection, and office expenses. 8, 787. 48 


Total. 173,137.21 

The length of this line is 2.1282 miles. 

The cost of this line per mile is therefore $81,350. 

For the operation of these lines there is provided the following carrier equipment: 

100 6-inch carriers. $1, 500 

1,100 8-inch carriers. 22, 000 


The figures given above do not include the commission paid to the Batcheller 
Pneumatic Tube Co. for overseeing the construction and assuming all responsibility 
for successful operation of the lines. This commission was usually 10 per cent. 

The most important of the apparatus entering into the equipment of the stations is 
given in the following tables, but except in the case of Stations Broad Street, J, and 
C, these tables are incomplete and take no account of the labor involved in pre¬ 
paring the station and installing the apparatus. The stations named are the only 
ones for which fairly complete information is available. 




































PNEUMATIC-TUBE SYSTEM. 


301 


I 


Central Post Office. 

4 8-inch gravity transmitters complete with automatic time locks, guards, ah con¬ 
nections, etc., 1906-1909. 

2 8-inch double-decked centrifugal receivers (equivalent to 4 receivers) complete 
with regulating apparatus and air connections: 

1906. 

1908 ... 

1 6-inch gravity transmitter with appurtenances, including patterns, 1912. 

1 6-inch single gate, receiver with appurtenances, including patterns, 1893, esti¬ 
mated. 

1 gauge board equipped with 6 pressure gauges and alarm whistles, 1906, estimated.. 

2 steel racks for 8-inch carriers, 1906, estimated. 

3 Ingersoll-Rand duplex reciprocating air compressors, cylinders 21 inches by i.2 
inches stroke, speed about 125 revolutions per minute, with Corliss type valves, 
gear, automatic lubricators to every moving part, Morse silent chain drive, chain 
guards, etc, 1906. 

3 Ingersoll-Rand duplex reciprocating air compressors, cylinders 21 inches by 10- 
inch stroke, speed about 160 revolutions per minute, with Corliss type valve gear, 
automatic lubricators, and provision for mounting motor armature directly upon 
driving shaft, 1908. 

1 Westinghouse D. C. 220-volt, 50-horsepower, shunt-wound electric motor, 525 
R. P. M., with driving pinion, 1906. 

1 Westinghouse D. C. 220-volt, 40-horsepower, shunt-wound electric motor, 550 
R. P. M., with driving pinion, 1906. 

1 Westinghouse D. C. 220-volt, 30-horsepower, shunt-wound electric motor, 600 
R. P. M., with driving pinion, 1906. 

1 Westinghouse D. C. 220-volt, 16.62-horsepower, shunt-wound electric motor, 160 
R. P. M., mounted directly upon driving shaft by compressor, 1908. 

1 Westinghouse D. C. 220-volt, 28.48-horsepower, shunt-wount electric motor, 160 
R. P. M., mounted directly upon driving shaft of compressor, 1908. 

1 Westinghouse I). C. 220-volt, 23.17-horsepower, shunt-wound electric motor, 160 
R. P. M., mounted directly upon driving shaft of compressor, 1908. 

6 slate switchboard panels for above motors, each mounting ammeter, 2-pole cir¬ 
cuit breaker, starting rheostat field regulator, pneumatic circuit breaker, 8-inch 
brass pressure gauge, etc., included. 

6 slate switchboard panels for above motors, each mounting circuit breakers, con¬ 
tractors, relays, etc., for remote control, 1912. 

1 station voltmeter, 1906. 

Air piping between compressors and tube terminals, 1906-1910. 

Electric wiring, 1906-1910. 

Compressor foundation, air reservoirs, pipe trenches and covers, compressor room 

(ventilating, etc.), installing the apparatus, etc., estimated (see plans Nos. 961, 
963, 1081, and 1082). 

Total cost of central post office, including Batcheller commission. 

Station S. 

2 8-inch gravity transmitters with time locks and appurtenances, 1906. 

1 8-inch double-decked centrifugal receiver (equivalent to 2 receivers) with appur¬ 
tenances, 1906. 

1 gauge board with 2 pressure gauges and alarm whistles, 1906, estimated. 

1 steel carrier rack, 1906. 

3 Ingersoll-Rand duplex reciprocating compressors, cylinders 21 inches by 12 inches 
stroke, speed about 125 R. P. M., Corliss type valve gear, with automatic lubri¬ 
cator, Morse silent chain drive, chain guards, etc., 1906. 

2 Westinghouse 220-volt, 2-phase, 60-cycle induction motors, 40-horsepower, 690 
R. P. M., with driving pinion, 1906. 

1 Westinghouse 220-volt, 2-phase, 60-cycle, induction motor, 50-horsepower, 685 
R. P M., with driving pinion, 1906. 

3 slate switchboard panels for above motors, equipped with ammeter, 4-pole circuit 
breakers, etc., included. 

3 slate panels for above motors equipped with circuit breakers, contactors, and re¬ 
lays for remote control, 1912. 

3 hand starters included. 

3 slate panels mounting change over switches. 

1 station voltmeter, 1906. 

Air piping, 1906. 

Wiring, 1906. 

Compressor foundations, pipe trenches, and covers, air reservoir, and installing 
apparatus, etc., exclusive of preparing station, estimated (see plans Nos. 931 and 
964). . 

Total cost of Station S, including Batcheller commission. 


Cost. 

Preset 

conditic 

$2, 704.00 

Good. 

1,372.00 

} Do. 

1,372.00 

550.00 

Do. 

750.00 

Do. 

75.00 

Do. 

100.00 

Do. 

6,930.00 

Do. 

9,000.00 

Do. 

V 

850.00 

Do. 

765.00 

Do. 

705.00 

Do. 

940.00 

Do. 

1 ,200.00 

Do. 

1 ,000.00 

Do. 

1,186.00 

Do. 

42.00 

Do. 

4,190.00 

Do. 

1,077.00 
18,796.32 

Do. 

53,604.32 


1,352.00 

Good. 

1,372.00 

Do. 

40.00 

Do. 

50.00 

Do. 

6,930.00 

Do. 

1 , 220.00 

Do. 

675.00 

Do. 

732.00 

Do. 

42.00 

Do. 

1,703.00 

Do. 

443.00 
7,861.86 

Do. 

22,420.86 









































302 


PNEUMATIC-TUBE SYSTEM 


Station O. 

2 8-inch gravity transmitters, complete, with appurtenances: 

1906.. 

1910. 

1 8-inch double-decked centrifugal receiver, complete, with appurtenances, 1906... 

1 gauge board with 2 pressure gauges and alarm whistles, 1906. 

1 steel carrier rack, 1906. 

2 Ingersoll-Rand duplex air compressors, cylinders 21 inches by 12-inch stroke, 
Corliss type valve gear, speed about 125 R. P. M., with automatic lubricators, 
Morse chain drive, chain guard, etc., 1906. 

1 Connersville special positive pressure Root type blower, 5.75 cubic feet per revo¬ 
lution, speed about 226 R. P. M., with Reynolds silent chain drive inclosed in 
guard and miming in oil, etc., 1910. 

1 Westinghouse 220-volt, 2-phase, 60-cycle induction motor, 40 horsepower, 690 
R. P. M., with driving pinion, 1906. 

1 Westinghouse 50-horsepower induction motor, 685 R. P. M., similar to preceding, 
1906. 

1 General Electric 35-horsepower induction motor, 690 R.P. M., with driving pin¬ 
ion and outboard bearing, 1910. 

3 slate panels, mounting ammeters, 4-pole circuit breakers, etc., included. 

3 slate panels, mounting 2-pole circuit breakers, contactors, relays, etc., for remote 
control, 1912. 

3 slate panels, mounting change over switches, 3 hand starters included. 

1 station voltmeter, 1906. 

Air piping, 1906-1910. 

Electric wiring, 1906-1910... 

Compressor foundations, pipe trenches and covers, and the installing of apparatus, 
etc., exclusive of preparing station, estimated (see plans Nos. 1210 and 1211). 

Total cost of Station O, including Batcheller commission. 

Station Falrhill. 


2 8-inch gravity transmitters complete as described, 1910.. 

1 8-inch double-decked centrifugal receiver (eciuivalent to 2 receivers) complete as 
described, 1910. 

1 guage board mounting 2 pressure guages and valve whistles, 1910. 

1 steel carrier rack, 1910. 

2 Connersville special positive pressure Root type blowers, 5.75 cubic feet per revo¬ 
lution, speed about 226 R. P. M., with Reynold silent chain drive inclosed in guard 
and running in oil, 1910. 

1 Connersville blower as above but of a displacement of 4.3 cubic feet per revolution 
and speed of 300 R. P. M., 1910. 

1 General Electric 220-volt, 2-phase, 60-cycle induction motor, 50 horsepower, 690 
R. P. M., with driving pinion and out-board bearing, 1910. 

1 General Electric motor similar to the preceeding but of 35 horsepower, 1910. 

1 General Electric motor similar to the preceeding but of 25 horsepower, 1910. 

3 slate panels mounting ammeter, 4-pole circuit, oil-circuit breaker, with automatic 
overload and no voltage release, included. 

3 slate panels mounting 2-pole circuit breakers, contactors and relay for remote 
control, 1912. 

3 hand starters, included. 

2 panels mounting throw-over switches. 

1 station voltmeter, included. 

Compressor foundations, pipe trenches and covers, air reservoir, and installing 

apparatus, etc., exclusive of preparing station estimated (see plans Nos. 1207-1208- 
1288). 

Total cost of Fairhill Station (including Batcheller commission). 

Station, North Philadelphia. 

1 8-inch swinging cradle transmitter with time lock and appurtenances, 1910. 

1 8-inch centrifugal receiver, 1910. 

1 gauge board mounting one gauge, 1910, estimated. 

1 steel carrier rack, 1910. 

1 Connersville special positive pressure Root type blower 5.75 cubic feet per revo¬ 
lution, speed about 226 R. P. M., Reynold silent chain drive inclosed in guard, 
running in oil, 1910. 

1 Connersville blower similar to preceding but of a displacement of 4.3 cubic feet per 
revolution and a speed of about 300 R. P. M., 1910. 

1 General Electric 220-volt, 2-phase, 60-cycle induction motor, 50-horsepower, 690 
R. P. M., with driving pinion and outboard bearing, 1910. 

1 General Electric motor similar to preceding but of 25-horsepower, 1910. 

2 slate panels mounting ammeter, 4-pole circuit breaker, etc., included. 

2 slate panels mounting 2-pole circuit breakers, contractors and relays for remote 

control, 1912. 

2 hand starters included. 

1 station voltmeter included. 

Compressor foundations, pipe trenches and covers, air reservoirs, and installing 
apparatus,etc., exclusive of preparing station, estimated(seeplans Nos. 1274-1287). 

Total cost of North Philadelphia Station,including Batcheller commission... 


Cost. 

Present 

condition. 

$676.00 

Good. 

520.00 

Do. 

1,372.00 

Do. 

40.00 

Do. 

50.00 

Do. 

4,620.00 

Do. 

1,491.00 

Do. 

610.00 

Do. 

675.00 

Do. 

575.00 

Do. 

770.00 

Do. 

42.00 

Do. 

2,123.00 

Do. 

361.00 

Do. 

7,519.00 


21,444.00 


1,040. 00 

Good. 

1,372.00 

Do. 

40.00 

Do. 

50.00 

Do. 

3,041.00 

Do. 

1,272.00 

Do. 

643.00 

Do. 

575.00 

Do. 

530.00 

Do. 

770.00 

Do. 




5,039.82 


14,372.82 


1,040.00 
686.00 
30.00 
50.00 
1,550.00 


1,272.00 
643.00 
530.00 


385.00 


3,340.00 


9,526. 44 


Good. 

Do. 

Do. 

Do. 

Do. 


Do. 

Do. 

Do. 

Do. 













































PNEUMATIC-TUBE SYSTEM. 


303 


Reading Terminal Station. 

1 8-inch gravity transmitter complete as described, 1909. 

1 8-inch tilting tube closed receiver, 1909, estimated. 

1 steel carrier rack, estimated... 

1 chute from train floor, 1898. 

Construction of inspection pit and installing apparatus and piping, etc., as per 

plan No. 1193, estimated. 

Total cost of Reading Terminal Station, including Batcheller commission... 
Pf.nn Square, or Broad Street Station. 

2 8-inch gravity transmitters complete as described, 1910... 

1 8-inch double-decked centrifugal receiver (equivalent to 2 receivers) complete as 

described, 1910. 

1 gauge board, mounting 3 pressure gauges, 1910. 

1 steel carrier rack, 1910. 

3 Ingersoll-Rand duplex reciprocating air compressors, cylinders 21 inches by 10- 
inch stroke, Corliss type valve gear, automatic lubricators, and provision for 
mounting motor armature directly on driving shaft, 1910. 

1 Westinghouse D. C. 220-volt, 50-horsepower, shunt-wound electric motor, 160 
R. P. M., with driving pinion, 1910. 

1 Westinghouse motor similar to preceding, 35-horsepower, 160 R. T\ M., 1910. 

1 Westinghouse motor similar to preceding, 23-horsepower, 160 R. P. M., 1910. 

3 slate panels, with ammeters, 2 pole circuit breakers, field regulators, and starting 
rheostats included. 

3 slate panels, circuit breakers, contactors, and relays for remote control, 1912. 

1 station voltmeter, 1910. 

Compressor foundations, pipe trenches and covers, and installing apparatus, etc., 

as per plans Nos. 1276-1293, including preparing station, plans, etc. 

Total cost of station, Broad Street, including Batcheller commission. 

Station J. 

2 8-inch gravity transmitters, complete, as described, 1908.,. 

1 8-inch double-decked centrifugal receiver (equivalent to 2 receivers), complete, 

as described, 1908. 

1 gauge board mounting gauges and 3 alarm whistles, 1908. 

1 steel carrier rack, 1908... 

3 Ingersoll-Rand duplex reciprocating compressors, cylinders 21 inches by 10-inch 
stroke, about 160 R. P. M. Corliss type valve gear with automatic lubricators, 
Morse silent chain drive, chain guards, etc., 1908. 

1 Westinghouse 220-volt, 2-phase, 60-cycle induction motor, 50-horsepower, 690 
R. P. M. driving pinion, 1908. 

1 Westinghouse motor similar to preceding but of 35 horsepower, 1908. 

1 Westinghouse motor similar to preceding but of 21.6 horsepower, 1908. 

3 slate panels equipped with ammeter, 4-pole circuit breakers, etc., included. 

3 slate panels equipped with 2-pole circuit breakers, contactors, and relays for 
remote control, 1912. 

3 slate panels, mounting throw-over switches included. 

3 hand starters included. 

1 station voltmeter, 1908. 

Compressor foundations, pipe trenches and covers, and installing apparatus, etc., 
per plans Nos. 1107-1108, including preparing station, plans, etc. 

Total cost of Station J, including Batcheller commission. 

Station C. 

1 8-inch gravity transmitter as described, 1908. 

1 8-inch centrifugal receiver complete as described, 1908. 

1 gauge board mounting l pressure gauge and alarm whistle, 1908, estimated. 

1 steel carrier rack, 1908.. 

2 Ingersoll-Rand duplex air compressors, cylinders 21 inches by 10-inch stroke,! 

Corliss valve gear, speed about 160 R. P. M.,automatic lubricators, Morse chain > 
drive, chain guards, etc., 1908. J 

1 Westinghouse 220-volt, 2-phase, 60-cycle, induction motor, 50 ’horsepower, 690 
R. P. M., with driving pinion, 1908. 

1 Westinghouse motor similar to preceding, 21.6 horsepower, 690 R. P. M., 1908- 

2 slate panels mounting ammeters, 4-pole circuit breakers, contactors, etc., included. 
2 slate panels mounting 2-pole circuit breakers, contactors, relays, etc., for remote 

control, 1912. 

2 panels for throw-over switches, included. 

2 hand starters, included. 

1 station voltmeter, 1908. . .... 

Compressor foundations, pipe trenches and covers, cost of and installing apparatus, 
etc., as per plans Nos. 823 and 1100, including preparing station, plans, etc. 

Total cost for Station C, including Batcheller commission. 


Cost. 

Present 

condition. 

$676.00 

Good, 

1, 700.00 

Do. 

50.00 

Do, 

75.00 

Do. 

1,350.00 

Do. 

3,851.00 


1,352.00 

Good. 

1,372.00 

Do. 

40.00 

Do. 

50.00 

Do, 

( 3,300.00 

1 

t 3,000.00 

\ Do, 

l 3,000.00 

1 

2,340.00 

Do. 

1,200.00 

Do. 

1,000.00 

Do, 

479.00 

Do, 

42.00 


3,765.00 


20,940.00 


1,352.00 

Good, 

1,372.00 

Do. 

40.00 

Do. 

50.00 

Do. 

( 3,800.00 

) 

^ 3,500.00 

} Do. 

l 3,500.00 

1 

716.00 

Do, 

600.00 

Do. 

521.00 

Do. 

770.00 

Do. 

42.00 

Do. 

9,808.00 


26,071.00 


676.00 

Good, 

686.00 

Do. 

30.00 

Do. 

50.00 

Do. 

3,800.00 

Do. 

3,500.00 

Do. 

716.00 

Do. 

521.00 

Do, 

385.00 

Do, 

42.00 

Do. 

5,384.00 

Do, 

15,790.00 























































304 


PNEUMATIC-TUBE SYSTEM. 


Southwark Station. 

2 8-inch gravity transmitters, complete as described, 1908. 

1 8-inch double-decked centrifugal receiver (equivalent to 2 receivers), complete as 

described, 1908. 

1 gauge board, mounting 3 gauges and alarm whistles, 1908, estimated. 

1 steel carrier rack, 1908. 

3 Ingersoll-Rand duplex, reciprocating air compressors, cylinders 21 inches by 10- 
inch stroke, about 160 R. P. M. Corliss valve gear, automatic lubricators, Morse 
silent chain drive, chain guard, etc., 1908. 

1 Westinghouse 220-volt, 2-phase, 60-cycle induction motor, 50-horsepower, 690 
R. P. M. driving pinion, 1908. 

1 Westinghouse motor, similar to preceding, 24.5 horsepower, 1908. 

1 Westinghouse motor, similar to preceding, 21.6-horsepower, 1908. 

3 slate panels, mounting ammeters, 4-pole circuit breaker, etc., included. 

3 slate panels, mounting 2-pole circuit breakers, contactors and relays for remote 
control, 1912. 

4 slate panels, mounting throw-over switches, included. 

3 hand starters included. 

1 station voltmeter, 1908. 

Cost of compressor foundations, pipe trenches and covers, installing apparatus, etc., 
as per plans Nos. 1109-1149, exclusive of preparing station, estimated. 

Total cost of Southwark Station, including Batcheller commission. 

Station D. 

1 8-inch gravity transmitter complete as described, 1908. 

1 8-inch centrifugal receiver complete as described, 1908. 

1 gauge board mounting one pressure gauge and alarm whistles, 1908, estimated... 

1 steel carrier rack, 1908. 

2 Ingersoll-Rand duplex reciprocating air compressors, cylinders 21 inches by 10 
inch stroke, Corliss valve gear, about 160 R. P. M., automatic lubricators, Morse 
silent chain drive, chain guards, etc., 1908. 

1 Westinghouse 220-volt, 2-phase, 60-cycle induction motor, 50-horsepower, 690 
R. P. M., with driving pinion, 1908. 

1 Westinghouse motor similar to preceding 21.6 horsepower, 690 R. P. M., 1908_ 

2 slate panels mounting ammeters and 4-pole circuit breakers, included. 

2 slate panels mounting 2-pole circuit breakers, contactors, relays, etc., for remote 
control, 1912. 

2 hand starters, included. 

1 station voltmeter, 1908. 

Cost of foundations, pipe trenches and covers, and installing apparatus, etc., as per 
plans Nos. 1061-1148, exclusive of preparing station. 

Total cost of Station D, including Batcheller commission. 

Bourse Station. 

1 6-inch cradle transmitter, 1908, estimated. 

1 6-inch tilting tube closed receiver, 1893, estimated. 

1 wooden carrier rack, 1893. 

Cost of piping, installing apparatus, etc., exclusive of preparing station, estimated.. 

Total cost Bourse Station, including Batcheller commission. 


Cost. 

Present 

condition. 

$1,352.00 
1,372.00 

Good. 

Do. 

40.00 
50.00 
f 3,800.00 
\ 3,500.00 
l 3,500.00 
716.00 

Do. 

Do. 

| Do. 

Do. 

600.00 
521.00 

Do. 

Do. 

695.00 

Do. 

42.00 
8,741.52 

Do. 

24,929.52 


676.00 
686.00 
30.00 
50.00 

Good. 

Do. 

Do. 

Do. 

1 3,715.00 

j 3,418.00 

} Do. 

716. 00 

Do. 

521.00 

Do. 

348.00 

Do. 

42.00 
5,509.08 

Do. 

15,711.08 


1,500.00 

1,200.00 

20.00 

1,468.00 

Good. 

Do. 

Do. 

4,188.00 



New list carrier parts on hand at the shop. 

6-inch: 

11 carriers, complete, at $15.. 

60 shells, at $1.60. 

50 body rings, at $1.25. 

50 screw rings, at 60 cents. 

651 fingers, at 14 cents. 

148 lids, at 32 cents. 

135 knee pieces, at 5 cents. 

75 hinges, at 10 cents. 

55 hinge blocks, at 10 cents. 

157 brass washers, at 5^ cents. 

200 eccentrics, at 3| cents. 

110 bottoms, at 15 cents. 

102 packing rings, at 17^ cents.•.. 

75 levers, at 10 cents. 

50 bottom bolts, at 8 cents. 


$165.00 
96.00 

62.50 
30. 00 
91.14 
47.36 

6.75 

7.50 
5. 50 
8.64 

6.50 

16.50 
17.85 

7.50 
4.00 


572. 74 


















































PNEUMATIC-TUBE SYSTEM. 305 

8-inch: 

416 new carriers, complete, at $20. $8, 320. 00 

183 shells, at 95 cents. 173. 85 

250 bottoms, at 36 cents. 90. 00 

270 sleeves, at 33 cents. 89.10 

442 packing rings, at 71 cents. 313. 82 

600 lid rings, at 15 cents. 90. 00 

1,064 retaining rings, at 15 cents. 159. 60 

1,025 lids, at 20 cents. 205. 00 

565 washers, at 19 cents. 107. 35 

379 levers, at 12^ cents. 47. 38 

511 lock sockets, at 11| cents. 58. 76 

492 lock plungers, at 2 cents. 9. 84 

395 lock springs, at 63 cents. 248. 85 

600 lock washers, at 2 cents. 12. 00 

176 cams, finished, at 26 cents. 45. 76 

675 cams, not finished, at 4 cents. 27. 00 

211 bolts for levers, at 5 cents. 10. 55 

853 label holders, at 1 cent. 8. 53 

677 cam hinges, at 2\ cents. 16. 92 

200 hinge blocks, at 14 cents.^. 28. 00 

259 safety springs, at 12^ cents. j.. 32. 37 

155 buffer disks, at 75 cents.:. 116. 25 


Total value of carrier parts. 10, 783. 67 

mm 

Inventory of machine shop, February, 1913. 

LIST OF MATERIAL. 

1 Ferracute punch press.... $315. 00 

1 lathe, Prentice Bros., 24-inch swing. 800. 00 

1 lathe, Hamilton & Co., 12-inch swing. 200. 00 

1 lathe, Prentice Bros., 18-inch swing. 450. 00 

1 spread lathe, Patterson, Gottfried & Hunter. 50. 00 

1 shaper, Girard Machine & Tool Co. 350. 00 

1 large drill press, F. Toomery & Co. 150. 00 

1 large drill press, Aurora Tool Co. 125. 00 

1 large drill press, no name. 50. 00 

1 grinder. 25. 00 

1 gas blower pump, complete. 25. 00 

1 motor and rheostat, complete. 100. 00 

1 Regal electric-engine pump, complete. 200. 00 

1 hand pump with hose. 50. 00 

Belts, pulleys, and shafting. 100. 00 

1 kit shop tools.*. 150. 00 

14 screw jacks, various sizes. 40. 00 

1 chronograph. 50. 00 

1 tool grinder. 60. 00 


3, 290. 00 

STOCK IN WEST PHILADELPHIA STORE YARD. 

1,105 feet 8-inch pipe, at $1.35. $1,491. 75 

2 dutchmen, complete, at $50. 100. 00 

1 cradle transmitter, complete. 1, 200. 00 

1 8-inch tilting tube receiver, complete. 1, 500. 00 

1 engine and contractor’s equipment. 2, 000. 00 

40 feet 6-inch tubing, special. 129. 00 

40 8-inch spigots, at $14.50. 580. 00 

30 8-inch reducers, at $14.50. 435. 00 

10 8-inch ells, gas pipe, at $4.75. 47. 50 

7 8-inch sliding valves, at $15. 105. 00 

6 -^-horsepower motors, at $12. 72. 00 


Total shop equipment and reserve apparatus. 7, 660. 25 

Carrier parts. 10, 783. 00 


Total repair supplies and equipment. 22, 306. 66 

78419—13-20 
































































306 


PNEUMATIC-TUBE SYSTEM. 


Statement of cost of electric power for each station for year ending Dec. 31, 1912, Pneumatic 

Transit Co. 


Central post office. 

Station 0. 

Station C. 

Station S. 

Station J. 

Station I). 

Station Southwark. 

Station Broad Street. 

Station North Philadelphia 
Station Fairhill. 


$7, 952. 64 
4,160. 00 

1.199. 70 
4, 730. 58 
3. 025. 22 

563. 78 
1, 659. 20 
3, 662. 80 
1, 046. 40 

3.199. 40 


Total 


31,199. 72 


Statement for the year ending Dec. 31, 1912, Pneumatic Transit Co. 


Operating: 

Electric power for operating tubes. $31,199. 72 

Power regulation. 7,957.72 

Station labor. 26, 204. 13 

Wagon service. 286. 38 

Linemen’s expenses. 406. 28 

Fines. 80. 78 

- $66,135. 01 

Maintenance: 

Electric power for repair shop. 113. 19 

Repair-shop labor. 1, 452. 42 

Machinery repairs. 2, 639. 00 

Line repairs. 1,722.09 

Supplies. 639. 64 

Freight and hauling. 190. 69 

- 6,756.03 

General: 

Salaries and administration. 2, 885. 95 

Rent of office and repair shop. 1, 712. 64 

Telephones. 652. 91 

Stationery and postage. 112. 17 

Office expense. 145. 01 

General expense. 707. 36 

Legal and municipal expense. 784. 04 

Insurance. 104. 99 

Taxes. 2, 754. 21 

-„ 9, 859. 28 


Total... 82,750.32 

Depreciation. 4, 669. 50 


87, 419. 82 

Cost of Construction of Line B. S. S.-J-C, Philadelphia, as Shown by Bills 

After its Completion Feb. 4, 1908. 

Distance exclusive of terminals. 



Feet. 

Miles. 

B. S. S.-J. 

6,531 

4,639 

1.239 

J-C. 

.8825 


Total. 

11,170 

2.1215 




Note. —At the time of this estimate this line was being operated temporarily 
J-B. S. S.-J with a closed receiver at the B. S. S.; hence its cost was somewhat less 
than it is at present with the two compressors installed at the B. S. S. 

Items marked * are part of an order comprising other lines or stations not included in 
this estimate. Items marked f are part of an order involving other stations on this line. 
In both cases the amount chargeable is estimated on the basis of the proportionate part 
of the whole which the item represents. Lengths after change at B. S. S., 2.1282. 




















































PNEUMATIC-TUBE SYSTEM. 


307 


Station equipment. 
B. S. S. 


Transmitter, 1 (Frank Rittenhouse). $531.00 

Closed receiver, 1 (Kelly).135] 00 

Air piping between receiver and transmitter (West End Heating & Engi¬ 
neering Co.).... 59.64 

Special flanged pieces: 1 bell and flange 1 foot 5j| inches long; 1 double 
flange 7 feet 9 inches long (flanges—McNeely, $3.90; McDonald Machine 

Co., estimate, $10)... 13. 90 

Casting (included in price of transmitter). 

Erecting terminals (our own men estimate) (closed receiver, transmitter). 20. 00 

Restoring corrugated-iron ceiling (our men estimate). 5. 00 

Hanger for tube (Brewer Bros.). 7. 35 

Excavation of pit for transmitters (Evers) (cost, plus 10 per cent). 838. 25 

Lumber for supporting floor over excavation (Evers). 37. 24 

Restoring (Evers, $13.97; our own men estimate, $5). 18. 97 

Painting terminals and air piping (estimate f). 20. 00 

Special S pipe, receiver to transmitter (estimate*). 35. 00 

Counter for transmitter (Schaeffer & Budenburg).10. 50 

Stopper for transmitter (Julius Ruith). 1. 00 

Temporary planking floor of truck room, material and labor (Evers), cost, 

plus 10 per cent.. 97. 07 

Changing old line at B. S. S., air piping (West End Heating & Engineer¬ 
ing Co.). 186.99 


2, 066. 91 

Cost of subsequently installing compressing plant. 16, 243. 90 


18, 310. 81 


Transmitters, 2 at $531 (Rittenhouse). $1, 062. 00 

Receivers: 

1 upper deck (Geo. V. Cresson & Co.). 686. 00 

1 lower deck (Geo. Y. Cresson & Co.). 686. 00 

(Including gate valves f castings and regulating valves.) 

Compressors (Ingersoll-Rand Co.): 

2, at $3,500. 7,000.00 

1, at $3,800. 3,800.00 

Delivered and erected, including Morse chains. 

Motors: 

150 horsepower (Westinghouse). 719. 00 

130.2 horsepower (Westinghouse). 601. 00 

121.6 horsepower. 521. 00 

Motors, 2-phase, 7,200 alt. 220 volt 690. Price includes auto-starters and 
panels each provided with ammeters and circuit breaker, also delivery 
and erection. Meter panel, 2 integrating wattmeters, 4-pole switch and 
fuse blocks furnished by the Philadelphia Electric Co., transformers and 

inclosures (furnished without charge by Philadelphia Electric Co.). 1, 488. 93 

Air piping, including gauges and gauge connections (West End Heating & 
Engineering Co.) 

Electric conduits underground, auto-starters to motors (J. H. Buckanan, 

estimate f). 49. 50 

Electric conduits, overhead from transformers (service switch) to meter 
panel, thence to switchboard; also cables, service, switch to motors, 

also electric lights and gauge board. 272. 00 

Support for auto-starters (John Maneely). 10.16 


Trench frames (Steward & Stevens, estimate f).• 

Building foundations and pipe trenches, restoring floor, facing walls with 
lath and plaster, cutting one door, building wall across one end of room, 
cutting wall to it in adjoining basement, cementing entire adjoining 


basement, cost plus 10 per cent (Evers). 3, 601. 37 

Moving gas pipes and fixtures, heater, sink, wire partitions in post-office 

building; also connecting drains from area way to sewer (Rockett cost)- 397. 61 

Oil separators, 2 at $61.50 (Warren & Webster, Maneely). 123.00 



































308 


PNEUMATIC-TUBE SYSTEM. 


Screen castings, 2 at $40 (estimate* Geo. V. Cresson & Co.). $80.00 

Pneumatic circuit breakers (Rittenhouse), 3 at $28. 84.00 

Alarm whistles (American Steam Gauge Co.), 3 at $4.35. 13. 05 

Metal ceiling (Penn Metal Ceiling Co.).. 134. 00 

Painting terminals, compressors, piping, walls, ceiling, foundations, etc. 

(estimate f). 150.00 

Voltmeter and swinging arm (Westinghouse). 42. 00 

Pipe supports under air piping (Brewer Bros.) (2, $16; 8, $35.75).. 51.75 

Lockers (included in bill for extras). 

Oil can and filters, 2 at $6, and 1 at $25. 37. 00 

Chain guards, 3 at $47 (Strandwitz & Scott).. 141.00 

Handling mechanism for regulating valves (Rittenhouse, estimate f)- 107. 00 

Special flanged pieces: 

1, 10 inches long, $27.50. 27. 50 

2, 4 by 6f inches long, $51.70 (estimate). 103.40 

Oil drips, 3 at $4. 12.00 

Counters for transmitter, 2 at $10.50. 21.00 

Stoppers for transmitter, 2 at $1. 2.00 

Old boiler tubes for foundation bolts (Henry A. Hitner’s Sons), 1£ cents 

per pound (estimate). 15. 00 

2 pieces of 6-inch I beam, 9 feet (12£ pounds), for door and window 

(Steward & Stevens)... 6.10 

Extra charge for 4-pole breakers instead of 2-pole: 

2, 100 amperes, at $45. 90. 00 

1, 50 amperes, at $25. 25. 00 

Pipe supports under tubes (Brewer Bros.). 13. 95 

Extra air piping for temporary connection to operate to B. S. S. and 

return (west end). 101. 97 

Erecting terminals, our men (estimate), $20; Cresson’s men (estimate), 

$45. 65.00 


Total for equipment of Station ,T. 22, 437. 24 


C. 

Transmitter, 1 (Rittenhouse). 

Receiver, 1 lower deck (Geo. V. Cresson & Co.). 

Compressors: 

1, at $3,500. 

1, at $3,800.. 

Motors: 

1 50-horsepower (estimate *). 

1 21.6-horsepower (estimate *). 

Air piping, gauges, and gauge piping (West End Heating & Engineering 

. Co). 

Conduits, overhead, all cables from service switch to motors, electric- 
light conduits and wiring, gauge board, etc. (United Electric Con¬ 
struction Co.). 

Support for auto starters (Maneely). 

Trench frames (Steward & Stevens) (estimate f).- 

Building foundations and pipe trenches, restoring floor, facing walls with 
lath and plaster, building partition across one side of room, cost plus 10 

per cent (Evers). 

Handling mechanism for regulating valves (estimate f). 

Oil separators, 1. 

Screen casting, ] (estimate *).. 

Pneumatic circuit breakers, 2, at $28. 

Alarm whistles, 1. 

Metal ceiling (Penn Metal Ceiling Co.). 

Painting (estimate f). 

Voltmeter and swinging arm. 

Lockers (included in bills for extras). 

Oil can and filter (Murray & Murray). 

Chain guards, 2, at $45.50. 

Special flanged pieces (Geo. V. Cresson & Co.): 

1, 5 feet 8£ inches long (estimate *). 

1, 10 feet 2| inches long (estimate *). 


$531. 00 
686 . 00 

3, 500. 00 
3, 800. 00 

719. 00 
521. 00 

863. 00 


183. 00 
7. 05 
18. 70 
43. 80 


1,565. 45 
78. 00 
61. 50 
40. 00 
56. 00 
4. 35 
139. 50 
183. 00 
42. 00 

37. 00 
91. 00 

64. 63 
115. 67 
















































PNEUMATIC-TUBE SYSTEM. 309 

Oil drips 2, at $4... $8. 00 

Counter for transmitter.. 10 

Stopper for transmitter... qq 

Old boiler tubes for foundation bolts, H cents per pound (estimate).'.'. „ 10. 80 

Extra charge for 4-pole breakers instead of 2-pole: 

1 100-ampere. 45.00 

1 50-ampere. 25 00 

Stirrups, etc., for supporting tubes (Brewer Bros.). 1210 

Erecting terminals: 

(Cresson’s men, $30), (our own men, estimate, $10). 40. 00 

Conduits underground (Buchanan). 33.00 

Extra for wiring. 10 00 


Total equipment of Station C. 13 539. 06 

Street materials. 

Tubing, 21,862.6 feet, at $1.33 (R. D. Wood & Co.). $29, 514. 51 

(Short lengths made from defective pieces same price per foot.) 

Bends (Geo. V. Cresson & Co.): 

90°, 22, at $191. 4,202.00 

45°, 20, at $105...... 2.100.00 

Reducers, 73, at $15 (Rittenhouse) (one was broken accidentally). 855. 00 

Drip lengths, 13,720 pounds, at 10 cents (R. D. Wood & Co.). 936. 00 

Closing lengths (none used on this line). 

Manhole covers, 41, at $10 (Clark’s Iron Foundry). 410. 00 

Rails for manhole tops, $12.50 per manhole 1 (J. H. Oliver & Co.). 512. 00 

Channels for carrying tubes and conduit across sewers (Steward 

Stevens). 12.52 

Rubber rings for bends (Revere Rubber Co.) 100 pounds, at $1.40 per 

pound. 15.28 

Step irons for man holes, 4 per manhole, at 10 cents each. 16. 40 

Five-eighths bolts for bends (Hoopes & Townsend) 800. at $2.50 per C_ 20. 00 

3-inch iron conduit over subway, Arch Street and Sixteenth and Cuth- 
bert Streets (1,087 feet 6 inches, with couplings, etc., cut and threaded, 

John Maneely). 304. 54 

Special casting for joining iron and terra cotta conduit (Clark’s Iron 

Foundry)..... 3.00 

Sleeves for covering leaking bells, 2 \ sets, at $8 (estimate). 20. 00 

Sleeves for covering leaking tube (U. G. I.). 4. 31 

Hangers for tube over subway (Brewer Bros.). 4. 85 

Nails used at Stations J and C (Maddock & Co.). 2. 29 

Mandrels, 4 (2 broken), at $10. 40. 00 

Expansion plug (no new ones used). 

Pattern for S, flanged price, at B. S. S. (Buchanan). 72. 00 

Pattern for screen casting. 

Black protective paint for tubes over subway. 2. 45 

Iron cement (Paxon)... 1.50 


39, 049.15 

Street work. 

Earth, 8,383.34 cubic yards, at $2.95 (Evers). $24, 730. 86 

Excavation, rock, 47.48 cubic yards, at $3.25 (Evers) (excavation in¬ 
cludes cutting pavement, storing earth if necessary, back filling, cart¬ 
ing away surplus, and temporary repairing. Trench figured 32 inches 
wide or 36 inches if depth exceeds 6 feet; conduit trench, 13 inches 

wide). 154. 31 

Laying tubing, 22,822.6 feet, at 30 cents (Evers) (bends and drips counted 

double length). 6,846. 7$ 

4-duct conduit furnished and laid, 10,644.09 feet, at 40 cents (Evers) (with 

3-inch concrete on every side). 4, 256. 83 

Brickwork in manholes, 118,741, at $22.50 per manhole (Evers) (number 

of manholes, 41). 2, 643. 40 

Openings in foundation walls, 166.91 cubic feet, at $1 (Evers). 166. 91 

Concrete for bottom of manholes, 28.703 cubic yards, at $7.50 (Evers)... 215. 28 


1 Six rails 5 feet 9 inches long and six 3 feet long 4 inches deep, 50 pounds, at $0,237 per foot. 









































310 


PNEUMATIC-TUBE SYSTEM. 


Extras: Moving drains, fluming, and cradling sewers, altering sewer in¬ 
lets, cutting and restoring manholes of other companies (without Oct.). $1, 914. 08 

Extra support under tube where needed (Evers) (this work done at cost 

plus 10 per cent) for Oct. (estimate)... 700. 00 

Gas company’s bills for moving mains and services (principally to get 

them out of our manholes). 413.26 

Water bureau bills for moving mains and services. 189. 01 

Repaving sidewalks where tube is underneath. 237. 96 

Also across floor of baggage room, B. S. S. (Evers) (cost plus 10 per cent).. 722. 15 

Cement paving in baggage room (Evers) (cost plus 10 per cent). 722.13 

Cutting special lengths, 9, at $2.50 (others were made up without cutting 

by using short lengths). 22. 50 

Cutting 10-inch holes in girders over subway (P. J. Mahan). 115. 00 

Drilling holes for hangers over subway (P. J. Mahan). 14. 23 

Lagging tubes over subway to prevent freezing (Ehret Magnesia Co.), 80 

feet, at $2 (use of scaffolding $15).. 363.12 

Cutting 3-inch holes through plates at subway for conduits (P. J. Mahan). 44. 27 

Plumbers’ bills not included in extras above for moving drains, etc. ... 15. 98 

Repairing by city contractors on streets, railroad streets: 

3,021.35 square yards of asphalt, at $1.85. 5, 589.49 

646.6 square yards of granite block, at 22 cents. 142. 25 

405.96 square yards of granite block, at 36.3 cents. 148. 36 

40.10 square yards of crossing reset, at 19 cents. 7. 62 

Plus 5 per cent on above items to city for inspectors. 294. 38 

Repaving by private contract, contractors to guarantee: 

Vulcanite Paving Co., 80 square yards asphalt, Oxford Street, at $1.85. 168. 00 

Vulcanite Paving Co., 170 square yards asphalt, North Street, at $2.43. 413.10 

Richardson & Ross, 730.78 square yards asphalt, Cuthbert Street, at 

$2.43..... 745.79 

Changing old line at B. S. S.: 


Our men. 102. 54 

-- 205.78 

Restoring underside of bridge at subway (estimate).. 300. 00 


Total of street work. 53,502.93 


Freight and hauling. 


Freight on tubes from Camden, N. J., to Philadelphia (shown by receipt, 

$333.79; balance estimated, $98.59). $432.38 

Cartage of tubing (included in price for laying). 

Cartage of machinery from Cressons, etc. (John McCullough). 52.11 

Freight on transmitters, etc., from Norristown... 10. 21 

R. D. Wood, blocking 4 cars to hold pipes in place. 25. 00 


519.70 

Line equipment, carriers, 100, at $20. 2, 000. 00 

Plans and inspection. 

Inspectors. $1, 075. 00 

Draftsman (9 months). 900. 00 

Drafting materials (estimated). 100. 00 

City plans, 2.118 miles. 382. 58 

Blue prints (total 28.27 for this line estimated). 20. 00 


2, 477. 58 

Office and incidentals. 

Secretary’s time. $300. 00 

Stenographer (half of his time). 260. 00 

Chief engineer. 4. 050. 00 

Telephone (one-third of rent for 1 year). 62. 33 

Office rent (one-third of rent of engineering office 1 year). 333. 33 

Third and Chestnut Street office, $117 per month. 468. 00 

Mr. B.’s expenses to Pittsburgh, testing motors. 29. 39 

Testing concrete made with sand taken from trench (H. S. Sparkman 

Engineering Co.). 8. 00 


5, 511. 05 











































PNEUMATIC-TUBE SYSTEM. 


311 


Station equipment: 

B. S. S. 

J. 

C. 

Street materials. 

Street work. 

Freight and hauling.. 

Line equipment. 

Plans and inspection 
Office, chief engineer, 


Summary. 


telephones, bookkeeping, etc 


$18, 310. 81 
22, 437. 24 
13, 589. 06 
39. 049.15 
53. 502. 93 
519. 70 
2 , 000 . 00 
2, 477. 58 
5, 511. 05 


Plus 10 per cent, Batcheller Co 


157, 397. 52 
15, 739. 75 


173,137. 27 

. Note. —Work on this line was begun at Station C on June 1 , 1907. On August 3 the 
line was finished to Station J, and work begun on section to B. S. S. On November 1 
line was laid to wall of B. S. S. First carrier was sent J-C on December 12; first 
carrier J-B. S. S.-J. on December 18, and first carrier C-J on December 19. Gov¬ 
ernment was notified of completion on December 21, and accepted line on January 1, 
1908. Only one gang was employed on this line. The greatest distance covered in 
one day was 360 feet, and the greatest in one month, 3,069.99 feet, including 8-90 
bends and 4-45 bends. 

Geo. E. Reid, M. E. 

Philadelphia, Pa., February 28, 1913. 

I hereby certify that I have inspected the property described in attached inventory 
of pneumatic-tube lines and other property owned by the Pneumatic Transit Co., of 
Philadelphia, Pa., and dated February, 1913. 

Unless otherwise stated on the inventory form, I have found the present condition 
good. 

The costs stated for the apparatus, etc., are those furnished by the owning com¬ 
pany, but so far as it is possible for me to determine the accuracy of said costs I believe 
them reasonable. 

Geo. E. Reid, Mechanical Engineer. 

Washington, D. C., March 3, 1913. 


EXHIBIT J, PHILADELPHIA NO. 2. 

Failures of the Pneumatic Tube to Perform Service During the Year 1912 

(Pneumatic Tube Service, Route No. 510006). 

United States Post Office, 

Philadelphia, Pa. 

January 20. Report that no service was performed by the pneumatic tube between 
Station J and Station C—northbound line—between 1 and 2.04 p. m. on January 19. 

During the interruption of service 11 ounces of letter mail, including seven special- 
delivery letters, were delayed 34 minutes. The southbound line was in operation. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement, under date of January 22, 1912: 

“We beg to acknowledge receipt of yours of the 20th instant, reporting the failure 
of the pneumatic-tube service between Stations J and C, northbound line, from 1 
p. m. to 2.04 p. m. on January 19, 1912. 

“This failure of service was due to our inability to secure electric power at Station 
J, owing to the burning out of certain fuses on the main supply line of the Philadel- 
delphia Electric Co. The fuses were replaced and the electric current turned on in 
the shortest possible time, after which the line immediately resumed service.” 

January 23. Report that the pneumatic tube between Station D and Southwark 
Station—eastbound line—was not in full operation from 4.30 p. m. January 23 until 
6.15 p. m. January 24, owing to a block in the line, a carrier having become blocked in 
the eastbound line. During this interruption a wagon furnished by the Pneumatic 
Transit Co. was placed in service between the central office and Southwark Station, 
making hourly trips. This service, together with the service performed by the 
Philadelphia and southwest circuit, No. 4, electric car route 310011, prevented delay 
in the receipt of mails, except 20 ounces of letter mail for city delivery from Station 
D, which was delayed 24 hours. 
















312 


PNEUMATIC-TUBE SYSTEM. 


In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement, under date of January 29, 1912: 

“We beg to acknowledge receipt of yours of the 26th instant in regard to the failure 
of the pneumatic-tube service between Station D and Southwark Station-—eastbound 
line—from 4.30 p. m. January 23 until 6.15 p. m. January 24, 1912. This interrup¬ 
tion of service was due to the blocking of the eastbound line at the point where the 
line crosses South Broad Street on Carpenter Street. The breaking of a house service 
connection at this point allowed the water to collect in the tube line, where it quickly 
froze and blocked the carrier. The moment the block was located, the street was dug 
up, the pipe was thawed out, and the carrier was removed in the shortest possible 
time, after which the line immediately resumed service.” 

January 31. Report that no service was performed by the pneumatic tube from 
6.40 a. m. to 9.10 a. m. between the central office and Southwark, Station D, Penn 
Square Station, and Stations J and C, and between Stations S and O, Fairhill and 
North Philadelphia Stations. During this interruption of service 450 pounds of letter 
mail arriving at North Philadelphia Station by New York and Pittsburgh train No. 22, 
due North Philadelphia Station 7.20 a. m., was dispatched by train leaving North 
Philadelphia Station 7.53 a. m. Delay of 33 minutes. 

One hundred and fifty pounds of letter mail arriving by New York and Pittsburgh 
train 28, due North Philadelphia Station 7.54 a. m., was dispatched by train to Broad 
Street Station leaving North Philadelphia Station 8.04 a. m. Delay of 10 minutes. 

Eleven pounds of letter mail from Fairhill Station to Station O was delayed 1 hour 
and 37 minutes. 

Twenty-seven pounds of letter mail from Fairhill Station to Station O was delayed 
1 hour and 37 minutes. 

Thirty-eight pounds of letter mail for Stations J and C that should have been for¬ 
warded by pneumatic tube from central office was forwarded by Philadelphia and 
Southwest Circuit R. P. 0., trip 11, regular car, and 15 pounds of letter mail from 
central office for Station S was forwarded by Philadelphia and Frankford trip 9, regular 
car. 

This interruption of service also caused delay of 1 hour and 12 minutes to 2 pounds 
of letter mail from Station J to central office via Penn Square Station. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of February 2, 1912: 

“We desire to acknowledge receipt of your letter of the 1st instant, reporting failure 
of the pneumatic-tube service on January 31, 1912, from 6.40 a. m. to 9.10 a. m., 
between central office, Southwark Station and Station D, Penn Square Station, and 
Stations C and J, and between S and O, Fairhill and North Philadelphia Stations. 

‘ ‘ This failure of service was due to our inability to secure electric power on account 
of the fire at the alternating current plant of the Philadelphia Electric Co., located at 
Twenty-eighth and Christian Streets. The moment that power was obtainable the 
pneumatic-tube lines immediately resumed service in the shortest possible time.” 

February 22. Report that no service was performed by pneumatic tube from 12.30 
a. m. to 1.30 a. m. between Fairhill Station and North Philadelphia Station, owing 
to the lack of electric power. During this interruption of service 44 pounds of letter 
mail that should have gone through the tube was forwarded from North Philadelphia 
Station by regular wagon to connect Philadelphia and Chestnut Hill R. P. O., trip 28, 
at Fairhill Station, and 72 pounds 4 ounces of letter mail that should have been for¬ 
warded by tube from Fairhill Station was forwarded by regular wagon. This mail 
was intended to connect New York and Washington train 66, leaving North Philadelphia 
Station 1.12 a. m., but missed dispatch by that train and was subsequently dispatched 
by New York and Pittsburgh train 18, leaving North Philadelphia Station 1.51 a. m., 
causing a delay of 39 minutes; regular wagons made extra trips for the Pneumatic 
Transit Co. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of February 28, 1912: 

“We desire to acknowledge receipt of yours of the 26th instant, reporting failure of 
pneumatic-tube service between Fairhill Station and North Philadelphia Station on 
February 22 from 12.30 a. m. to 1.30 a. m. This failure of service was due to our 
inability to secure electric power owing to the effect of the terrific windstorm which 
occurred that night and which blew down wires of the Philadelphia Electric Co. 

“The moment power was obtainable the lines were immediately placed in service 
in the shortest possible time.” 

March 4. Report that no service was performed by pneumatic tube between central 
office and Bourse Station from 5.30 p. m. to 7 p. m., March 4, and from 9 a. m. to 10.07 
a. m. on March 5. During this interruption of service all mail to and from Bourse 
Station was dispatched by regular wagon as follows: March 4, 1,600 pounds letter mail; 
March 5, 12 pounds letter mail. 



PNEUMATIC-TUBE SYSTEM. 313 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of March 11, 1912: 

‘‘We desire to acknowledge receipt of yours of the 6th instant, reporting failure of 
the pneumatic-tube service between the central office and the Bourse Station from 
5.30 p. m. to 7 p. in., and from 9 a. m. to 10.07 a. m. on March 5, 1912. This failure 
of service was due to the breaking of the piston on the receiver at the central post-office 
end of the Bourse line. It was necessary to replace the broken piston with a new one, 
which was done in the shortest possible time, and the line immediately resumed 
service.” 

March 22. Report that no service was performed by the pneumatic tube between 
central office and Reading Terminal from 5.55 p. m. to 6.10 p. m., owing to a block 
in the “head” at the Reading Terminal. 

During this interruption of service 60 pounds of letter mail was dispatched by regu¬ 
lar wagon. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of March 29, 1912: 

“We desire to acknowledge the receipt of yours of the 25th instant reporting failure 
of the pneumatic-tube service between the central post office and the Reading Ter¬ 
minal from 5.55 p.m. to 6.10 p. m. on March 22, 1912. This interruption pf service was 
due to the slipping of the control valve on the time lock of the transmitter at the 
central office end of the Reading Terminal line, and resulted in the collection of 
several carriers in the head of the receiver of the Reading Terminal Station. The head 
was taken off and the carriers removed, thus freeing the line in the shortest possible 
time, and then the service was immediately resumed.” 

March 26. Report that no service was performed by pneumatic tube between 
central office and Bourse Station from 6.02 p. m. to 6.20 p. m., and from 6.28 p. m. 
to 6.40 p. m., on March 26; this interruption of service was caused by carriers lodged 
in the head of the Bourse receiver. 

On account of this interruption, 8 pouches of letter mail that should have gone 
through the tube, weight 538 pounds, was carried by regular wagon at 6.50 p. m. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of March 29, 1912: 

“We desire to acknowledge receipt of yours of the 27th instant, reporting failure of 
the pneumatic tube service between central post office and the Bourse Station from 
6.02 p. m. to 6.20 p. m., and from 6.28 p. m. to 6.40 p. m. on March 26, 1912. This 
interruption of the service was due to the blocking of the relief valve in the head of 
the Bourse Postal Station receiver. The head of the receiver was removed and the 
foreign substance extracted in the shortest possible time, after which the line immedi¬ 
ately resumed service.’” 

March 29. Report that no service was performed by pneumatic tube between Fair- 
hill Station and Station O from 8.45 p. m. to 9.30 p. m. During this interruption of 
service 10 pounds of letter mail for distribution at the central office was delayed 30 
minutes, and 9 pounds for distribution at North Philadelphia Station was delayed 
30 minutes. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of April 2, 1912: 

“We desire to acknowledge the receipt of yours of the 1st instant, reporting failure 
of the pneumatic tube service between Fairhill Station and Station O from 8.45 p. m. 
to 9.30 p. m. on March 29, 1912. This failure of service was due to our inability to 
secure electrical power, owing to the burning out of the main supply fuses of the 
Philadelphia Electric Co. The fuses were replaced and the power turned on, after 
which the line immediately resumed service.” 

March 30. Report that no service was performed by the pneumatic tube between 
Fairhill and North Philadelphia Stations from 5.05 p. m. until 5.25 p. m. 

During this interruption of service 266 pounds of letter mail intended to connect 
New York & Pittsburgh train 29, due to leave North Philadelphia Station at 5.37 p. m., 
and 26 pounds of letter mail, intended to connect New York & Pittsburgh train 44, 
leaving North Philadelphia Station at 5.29 p. m., missed dispatch. 

Mail intended for dispatch by train 29 was subsequently forwarded by train 45, 
leaving Broad Street Station 8.38 p. m. Delay of 3 hours and 1 minute. 

Mail intended to connect train No. 44 was subsequently dispatched by train No. 
148, leaving North Philadelphia Station 7.14 p. m. Delay of 1 hour and 45 minutes. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of April 3, 1912: 

“We desire to acknowledge receipt of yours of the 2d instant reporting failure of the 
pneumatic-tube service between Fairhill and North Philadelphia Station from 5.05 
p. m. to 5.25 p. m. on March 30, 1912. 


314 


PNEUMATIC-TUBE SYSTEM. 


‘•This failure of service was due to the breaking of a chain guard connecting the 
motor and blower at North Philadelphia Station and thus allowing the chain to slip 
from the gear wheel and interrupt the service. This chain guard was repaired and 
bhe chain replaced as expeditiously as possible and the line immediately placed in 
service. The following day the repaired chain guard was removed and a new one 
installed.’ ’ 

April 9.. Report that the pneumatic tube performed no service between the cen¬ 
tral office and Penn Square Station from 3.46 p. m. to 4.15 p. m. During this inter¬ 
ruption of service 240 pounds of letter mail that should have gone through the tube 
was sent by extra wagon furnished by the Pneumatic Transit Co., and 35 pounds of 
letter mail by regular wagon. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
Statement under date of April 12, 1912: 

“We desire to acknowledge receipt of yours of the 10th instant reporting failure of 
the pneumatic-tube service between the central post office and Penn Square Station 
from 3.46 p. m. to 4.15 p. m. on April 9, 1912. 

“This failure of service was due to the breaking of a transmitter pin on the retarding 
'mechanism of the gravity transmitter at the central post office end of the central 
office and Penn Square line. 

“The retarder was dismantled and a new pin substituted and the retarder replaced 
in the shortest possible time, after which the line immediately resumed service.” 

April 9. Report that no service was performed by the pneumatic tube between 
the central office and Bourse Station from 5.45 p. m. to 6.10 p. m. During this inter¬ 
ruption of service 795 pounds of letter mail that should have gone through the tube 
was forwarded from the Bourse Station to the central office by regular wagon. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of April 12, 1912: 

“We desire to acknowledge receipt of yours of the 10th instant reporting failure of 
the pneumatic-tube service between the central office and the Bourse Station from 
5.45 p. m. to 6.10 p. m. on April 9, 1912. 

“This failure of service was due to the collecting of some foreign substance in the 
trip valve which controls the head of the Bourse receiver. 

“The trip valve was taken apart and the obstruction removed and the valve then 
Replaced as expeditiously as possible. The line was immediately placed in service. 
At the completion of the scheduled period of operation the receiver was entirely 
overhauled.” 

April 17. Report that no service was performed by the pneumatic tube between 
central office and Reading Terminal Station from 6.14 p. m. to 6.32 p. m., the inter¬ 
ruption being caused by a block at the Reading Terminal end of the line. 

This interruption of service caused 11 pounds 8 ounces of letter mail intended 
for dispatch by train No. 323, leaving Reading Terminal 6.30 p. m., to be delayed, 
mail being subsequently dispatched by train No. 327, leaving Reading Terminal 9 
p. m., a delay of 2 hours and 30 minutes. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of April 25, 1912: 

“We desire to acknowledge receipt of yours of the 18th instant, reporting failure 
of pnuematic-tube service between central office and Reading Terminal Station 
from 6.14 p. m. to 6.32 p. m. on April 17, 1912. 

“This failure of service was due to the breaking of a spring on the controlling 
mechanism that controls the head of the Reading Terminal receiver. The head 
Was removed, carriers released in the shortest possible time, and the line immediately 
resumed operation.” 

April 24. Report that the pneumatic tube performed no service between the cen¬ 
tral office and Penn Square Station from 8.50 p. m. to 8. 55 p. m. and from 11.16 p. m. 
to 11.21 p. m. 

There was no mail delayed. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of April 30, 1912: 

“We desire to acknowledge receipt of yours of the 27th instant, reporting failure 
of the pneumatic-tube service between central office and Penn Square Station from 
8.50 p. m. to 8.55 p. m. and from 11.16 p. m. to 11.21 p. m., on April 24, 1912. 

, “This failure of service was due to the blowing out of fuses on the circuits control¬ 
ling the electric motor operating the compressor at the Penn Square Station engine 
room. These fuses were replaced and the line immediately resumed service.” 

April 27. Report that the pneumatic tube performed no service between central 
office and Station S from 6 p. m. to 6.39 p. m., owing to the transmitter at this office 
being out of order. 


PNEUMATIC-TUBE SYSTEM. 315 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 1, 1912: 

“We desire to acknowledge receipt of yours of the 30th ultimo, reporting failure 
of the pneumatic-tube service between central post office and Station S, from 6 p. m. 
to 6.39 p. m. on April 27, 1912, owing to the Station S transmitter at the central office 
being out of order. The retarder on this transmitter was not working in a proper and 
satisfactory manner, but nevertheless during the time above designated the line, 
was in working order and could and did transmit mail during all this period, although 
our operators and engineer were utilizing their spare time in repairing the retarding 
mechanism.” 

May 10. Report that the pneumatic tube performed no service between Penn 
Square Station, Reading Terminal, and central office, from 11.10 p. m. to 11.35 p. m. 
and from 11.46 p. m. to 11.52 p. m., owing to the fact that the transmitter was out 
of order. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 15, 1912: 

“We desire to acknowledge receipt of yours of the 14th instant, reporting failure 
of the pneumatic-tube service between Penn Square Station, Reading Terminal, and 
central office on May 10 from 11.10 p. m. to 11.35 p. m. and from 11.45 p. m. to 11.52 
p. m. 

“This failure of service was due to the slipping of the controlling valve on the 
transmitter located at the central office of the central post office-Reading Terminal 
line, thus allowing several carriers to come together at the receiving end of the same 
line located in the Reading Terminal. The carriers were removed and the con¬ 
trolling valve repaired in the shortest possible time, after which the line immediately 
resumed service.” 

May 11. Report that no service was performed by pnuematic tube between Penn 
Square Station and the central post office from 4.50 p. m. to 5.02 p. m., and from 
6.55 p. m. to 7 p. m., owing to the transmitter at Penn Square Station being out of 
order. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 15, 1912: 

“We desire to acknowledge receipt of yours of the 14th instant, reporting failure 
of pneumatic-tube service between Penn Square Station and central office from 
4.50 p. m. to 5.02 p. m., and from 6.55 p. m. to 7 p. m., on May 11, 1912. 

“This failure of service was due to the collection of some foreign substance on the 
retarder valve controlling the transmitter at Penn Square Station on the Penn Square- 
cent al office line. The foreign substance was removed in the shortest possible time, 
after which the line immediately resumed service.” 

May 17. Report that no service was performed by the pneumatic tube between 
central office and Bourse Station from 2.10 p. m. to 4.40 p. m., owing to a carrier being 
stuck in the bend at the central office end of the line. 

Thirteen pounds of letter mail from 5 carriers was taken from the line at 3.40 p. m. 
Delay, one hour. 

One special-delivery package containing wool was slightly soiled, but was cleaned 
and dispatched to destination. On account of the interruption, 250 pounds of letter 
mail that should have gone through the tube was carried by regular wagon, being 
received at the central office 4.20 p. m. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 23, 1912: 

“We desire to acknowledge receipt of yours of the 18th instant, reporting failure 
of pneumatic-tube service between central post office and the Bourse Station from 
2.40 p. m. to 4.40 p. m. on May 17, 1912. 

“This failure of service was due to the sticking of a carrier in the bend of the incoming 
line at central post office. The bottom screw ring on one of our carriers, due to a 
latent defect not visible upon examination broke in two and pushed its way toward 
the end of the carrier, so that when it reached the bend at central post office it wedged 
itself fast, so that when hit by a subsequent carrier it effectually blocked the line. 

“The bend was taken down, the carriers located and removed, and the bend 
replaced, after which the line immediately resumed service.” 

May 18. Report that no service was performed by the pneumatic tube between 
Stations C, .1, Penn Square, from 7.45 a. m. to 8.18 a. m. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 23: 

“We desire to acknowledge receipt of yours of the 20th instant, reporting failure of 
the pneumatic-tube service between Stations C, J, and Penn Square from 7.45 a. m. 
to 8.18 a. m. on May 18, 1912. 


316 


PNEUMATIC-TUBE SYSTEM. 


“ This failure of service was due to the blowing of a fuse on the main electrical cir¬ 
cuit leading into Station J, controlled by the Philadelphia Electric Co. 

‘‘The fuse was replaced, the compressor started, and the lines placed in service in 
the shortest possible time.” 

May 21. Report that no service was performed by the pneumatic tube between 
central office and Reading Terminal from 8.45 p. m. to 9.50 p. m., owing to a block 
in west-bound line. 

During this interruption of service 205 pounds of letter mail which should have 
gone through the tube was forwarded by regular wagon making extra trips. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 23: 

“We desire to acknowledge receipt of yours of the 22d instant, reporting failure of 
the pneumatic tube service between the central office and the Reading Terminal on 
the westbound line, 8.45 p. m. to 9.50 p. m. on May 21, 1912. This failure of service 
was due to a block in the westbound line, caused by a carrier lever breaking off the 
carrier in transit, which resulted in blocking the subsequent carriers. The moment 
the block was located the carriers were released, the lever removed, and the line 
immediately placed in service.” 

May 24. Report that no service was performed by the pneumatic tube between 
Penn Square Station and North Philadelphia Station, 7.10 p. m. to 9.30 p. m. This 
interruption caused a delay of 62 pounds of letter mail that should have been forwarded 
by tube. This mail was forwarded by train 9, via Broad Street Station. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 28: 

“We desire to acknowledge receipt of yours of the 25th instant, reporting failure of 
pneumatic tube service between Penn Square Station and North Philadelphia from 
7.10 to 9.30 p. m. on May 24, 1912. 

“This failure of service was due to our inability to secure power, owing to the fact 
that the heavy electrical storm which occurred on that date placed the power plants 
and the lines supplying us current at the stations along this route out of commission 
during the time designated. The moment power was obtainable the lines were im¬ 
mediately placed in service.” 

May 24. Report that no service was performed by the pneumatic tube between 
Southwark Station and central office from 7.25 p. m. to 8.50 p. m.; on account of this 
interruption 30 pounds of letter mail was delayed 1 hour and 25 minutes. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 28: 

“We desire to acknowledge receipt of yours of the 25th instant, reporting failure of 
the pneumatic-tube service between Southwark Station and central post office from 
7,25 p. m. to 8.50 p. m., on May 24, 1912. 

“This failure of service was due to our inability to secure power with which to oper¬ 
ate the motors controlling the compressors at Southwark Station. The heavy elec¬ 
trical storm which occurred that evening placed the power plant and the electrical feed 
lines out of commission during the above time stated. The moment power was obtain¬ 
able the tube lines were immediately placed in service.” 

May 22. Report that the pneumatic tube performed no service between Station O, 
Fairhill, and North Philadelphia Station between 5 p. m. and 5.20 p. m., owing to 
an accident to the pneumatic-tube machinery at Station O. 

This interruption of service caused a delay to 35 pounds of letter mail intended for 
dispatch by New York and Pittsburgh train 44, leaving North Philadelphia Station 
5.29 p. m. This mail was subsequently dispatched by New York and Washington 
train 148, leaving North Philadelphia at 7.14 p. m.; delay of 1 hour and 45 minutes. 

Also 133 pounds of letter mail missed dispatch by New York and Pittsburgh train 
29, leaving North Philadelphia Station at 5.37 p. m. Twenty-three pounds of this 
mail was subsequently dispatched by train No. 23, leaving North Philadelphia 7.08 
p. m.; delay of 1 hour and 31 minutes. The remainder of this mail, 110 pounds, was 
dispatched by New York and Pittsburgh train 45, leaving Broad Street Station at 8.33 
p. m.; delay of 3 hours and 1 minute. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of May 25: 

“We desire to acknowledge receipt of yours of the 24th instant, reporting failure of 
pneumatic-tube service between Station O, Fairhill, and North Philadelphia, 5 p. m. 
to 5.20 p. m., May 22. 

“This failure of service was due to the wedging fast of the upper gate on the north¬ 
bound transmitter at Station O, which made it impossible for carriers to be transmitted 
until the head of the transmitter was removed and the counterweight released. The 
moment this was done the lines were immediately placed in service and the transmit¬ 
ter entirely overhauled.” 


PNEUMATIC-TUBE SYSTEM. 


317 


June 1. Report that no service was performed by the pneumatic tube between 
Reading Terminal and the central office from 12.14 p. m. to 12.41 p. m. on account of 
trouble with machine at the Reading Terminal Station. 

In explanation of this irregularity the Pneumatic Transit Co. makes the following 
statement, under date of June 14, 1912: 

“We desire to acknowledge receipt of yours of the 3d instant, reporting failure of 
pneumatic-tube service between Reading Terminal and central post office between 
12.14 p. m. and 12.41 p. m. on June 1, 1912. 

“This failure of service was due to the slipping of the piston head in the cylinder 
controlling the Reading Terminal receiver, which consequently made it impossible 
to raise or lower the receiver, and thus allowed several carriers to collect in the line. 
The receiver was dismantled, the carriers removed, and the line freed, and service 
was resumed in the shortest possible time. 

“After the conclusion of the scheduled period of operation, the receiver was entirely 
overhauled and the piston head securely welded to the piston.” 

June 4. Report that the pneumatic tube performed no service between central 
office and the Bourse Station from 5.52 p. m. until 6.06 p. m., owing to a block at the 
Bourse Station. During this interruption 193 pounds of letter mail that should have 
gone through the tube were received by regular wagon. 

In explanation of this irregularity the Pneumatic Transit Co. makes the following 
statement under date of June 14: 

“We desire to acknowledge receipt of yours of the 5th instant, reporting failure of 
the pneumatic-tube service between central post office and the Bourse Station from 
5.52 p. m. to 6.06 p. m. on June 4, 1912. 

“This interruption of service was due to the controlling valve on the transmitter at 
the central post office end of the Bourse line becoming clogged by some foreign sub¬ 
stance in the nature of waste matter, which consequently allowed several carriers 
to be transmitted without the proper period of time intervening, so that they both 
came together at the Bourse Station and made it impossible for them to be removed 
without shutting down the line. This was done in the shortest possible time, after 
which the line immediately resumed service.” 

June 19. Report that the pneumatic tube performed no service between Station O 
and Fairhill Station from 8.40 p. m. to 9.42 p. m. 

This interruption of service caused delay m the forwarding of 16 carriers containing 
letter mail from Station S during that period, orders having been received from Station 
O to hold this mail at Station S awaiting orders from that station. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of June 21: 

“We desire to acknowledge receipt of yours of the 20th instant reporting failure of 
pneumatic-tube service between Station O and Fairhill Station on June 19 from 8.40 
p. m. to 9.42 p. m. 

“This failure of service was due to the blowing of fuses on electrical circuits of the 
lines operating the motors at Station O, which consequently made it impossible to 
operate our compressors until the fuses were replaced, which was done in the shortest 
possible time, and the lines immediately resumed service.” 

June 27. Report that the pneumatic tube performed no service between the central 
office and Station S from 1.20 a. m. to 2.30 a. m., June 27, and from 6.40 a. m. to 6.53 
a. m., June 27. 

During this interruption of service two carriers containing mail for North Phila¬ 
delphia Station were held at Station S from 1.20 to 2.30 a. m., delay of 1 hour and 10 
minutes; also six carriers containing mail for central office were held at Station S dur¬ 
ing this interruption, causing delay in delivery of this mail at central office for 1 hour 
and 10 minutes. Twenty-five carriers containing mail for central office were held at 
Station S from 6.40 a. m. to 6.53 a. m., causing delay of 13 minutes in the arrival of 
this mail at central office. 

In explanation of this irregularity the Pneumatic Transit Co. makes the following 
statement under date of June 29: # . 

“We desire to acknowledge receipt of yours of the 27th instant reporting failure ot 
the pneumatic-tube service between central post office and Station S from 1.20 to 2.30 
a. m. and from 6.40 to 6.53 a. m. on June 27, 1912. 

“This failure of service was due to the blowing out of electrical fuses on the electric 
circuits supplying our motors with current at Station S. The fuses were replaced, and 
the lines resumed service in the shortest possible time. 

“The period of service terminated at 1.30 a. m., but owing to the fact that all the 
mail had not been transmitted the lines were placed in service at 2.30 a. m. in order 
to transmit the mail both to and from Station S that had been delayed owing to the 
tube lines’ inability to secure power.” 


318 


PNEUMATIC-TUBE SYSTEM. 


July 15. Report that the pneumatic tube performed no service between the cen¬ 
tral office and Bourse Station from 12.12 p. m. to 7 p. m., July 15, and from 9 a. m. to 
7 p. m., July 16, and from 9 a. m. to 7 p. m., July 17, regular service being resumed 
9 a. m. on July 18; extra wagon service furnished by the Pneumatic Transit Co., was 
placed from 12.45 p. m., July 15, until 7 p. m., July i7. 

During this interruption of service letter mail that should have gone through the 
pneumatic tube between the Bourse Station and central office, and from central office 
to Bourse Station, was dispatched by wagon as follows: 


July 15: 

Bourse Station to central office (regular wagon) 
Bourse Station to central office (extra wagon).., 


Pounds. 
1,374 
1, 015 


Total 


2, 389 


Central office to Bourse Station (regular wagon). 53 

July 16: 

Bourse Station to central office (regular wagon). 2, 085 

Bourse Station to central office (extra wagon). 918 

Total. 3,003 


Central office to Bourse Station (regular wagon). 108 

July 17: 

Bourse Station to central office (regular wagon). 1,164 

Bourse Station to central office (extra wagon). 1, 510 

Total. 2,674 


Central office to Bourse Station (regular wagon). 141 

There was no delay of mail caused by this interruption, as the wagon service per¬ 
formed the same service as the pneumatic tube. 

In explanation of this irregularity the Pneumatic Transit Co. makes the following 
statement under date of July 25, 1912: 

“We desire to acknowledge receipt of yours of the 19th instant reporting failure of 
the pneumatic-tube service between the central post office and the Bourse Station 
from 12.12 p. m. to 7 p. ra., July 15, from 9 a. m. to 7 p. m., July 16, from 9 a. m. to 
7 p.m., July 17, 1912. This failure of service was due to the blocking of the eastbound 
pneumatic-tube line at the corner of Fourth and Chestnut Streets. After the block 
was located at the point by means of the chronograph, the street was excavated, the 
bend removed and found to contain two empty carriers, one of which was wedged 
securely at the opening of the bend. The bend was replaced and the line was imme¬ 
diately replaced in service in the shortest possible time.” 

July 25. Report that no service was performed by the pneumatic tube between 
the central office and Bourse Station from 10.05 a. m. to 10.30 a. m. This interruption 
caused delay of 25 minutes in the dispatch of 5 pounds of mail from the Bourse Station 
to central office. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of July 30, 1912: 

“We desire to acknowledge receipt of yours of the 26th instant reporting failure of 
the pneumatic-tube service between central office and Bourse Station from 10.05 
a. m. to 10.30 a. m. on July 25. 

‘ ‘ This interruption was due to the breaking of a cotter pin on the central post office 
receiver, so that the line had to be closed down in order that it might be removed 
and a new pin substituted. 

“This was done as rapidly as possible and the line immediately placed in service.” 

July 30. Report that no service was performed between central office and Penn 
Square Station from 11.35 p. m. to 11.48 p. m. This interruption of service caused 
a delay of 14^ pounds of mail intended for dispatch by train 1019, leaving Broad Street 
Station 11.30 p. m., which was subsequently dispatched by train 11, at 4.55 a. m., 
July 31, a delay of 5 hours and 5 minutes. Also, 12 pounds of southern mail in¬ 
tended for dispatch by New York & Washington train 55, leaving Broad Street Station 
11.50 p. m., missed dispatch by that train and was subsequently forwarded by New 
York & Washington train 53, leaving Broad Street Station 4.34 a. m., July 31, a delay 
of 4 hours and 44 minutes. 



























PNEUMATIC-TUBE SYSTEM. 


319 


At 11.35 p. m., July 30, an open carrier was received at Penn Square Station from 
central office, containing 2 packages of letters, one for Jersey City, the other for St. 
Louis, Mo. These letters were very badly soiled, but not mutilated, were cleaned 
and forwarded to destination, stamped “Damaged by pneumatic tube. ” Two letters 
were in such condition that they could not be forwarded to destination, as addresses 
were obliterated. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following- 
statement under date of August 1, 1912: 

“We desire to acknowledge receipt of yours of the 31st ultimo, reporting the failure 
of the pneumatic-tube service between the central office and Penn Square Station 
from 11.35 p. m. to 11.48 p. m. on June 30. 

“ This interruption of service was due to a carrier coming open in transit between the 
central office and Penn Square Station and allowing a bundle of mail to lodge in the 
bend of the tube line, thus blocking the following carrier. 

‘ ‘ The open carrier was due to the lid coming off on account of the breaking of a hinge- 
block which secures the lid in place. These blocks are manufactured out of the 
highest grade of steel and the defect which caused the break was such as not to be dis¬ 
covered on a careful examination. The line was freed and placed in service in the 
shortest possible time.” 

Report that the pneumatic tube performed no service between central office and 
Reading Terminal from 11.38 a. m. until 11.52 a. m., on account of a fuse blowing out 
in the engine room. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of August 29, 1912: 

“We desire to acknowledge receipt of yours of the 20th instant reporting failure of 
the pneumatic-tube service between the central office and Reading Terminal from 
11.38 a. m. to 11.52 a. m. on August 19, 1912. This failure of service was due to the 
burning out of fuses on the main circuits to the switchboards at the central office. 

“These fuses are installed to protect our electrical apparatus from an overcharge 
of the electric current. These fuses were at once replaced and the line immediately 
resumed service.” 

August 19. Report that the pneumatic tube performed no service between the 
central office and Penn Square Station from 11.38 p. m. to 11.44 a. m. and from 12.43 
p. m. until 12.48 p. m. on August 19, owing to the blowing out of a fuse. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of August 19, 1912: 

“We desire to acknowledge receipt of yours of the 29th instant reporting failure of 
the pneumatic-tube service between central office and Penn Square Station from 11.38 
a. m. to 11.44 a. m., and from 12.43 p. m. to 12.48 a. m. on August 19, 1912. 

“ This failure of service was due to the burning out of a fuse on the main line circuits 
leading to our switchboards at the central office, and deprived us of electric current 
for the period of six minutes until the fuse could be replaced and service resumed. 

“The fuse, however, that was installed only lasted one hour until it burned out on. 
account of a latent defect not apparent on close examination, whereupon another fuse 
was substituted and the line immediately placed in service.” 

August 24. Report that no service was performed by the pneumatic tube between 
central office and Reading Terminal from 11.42 to 11.51 a. m. During this time 10 
pounds of letter mail for mail room, Reading Terminal, was dispatched by regular 
wagon making extra trip to Reading Terminal, making connection with the mail. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of August 29, 1912: 

“We desire to acknowledge receipt of yours of the 26th instant, reporting failure of 
the pneumatic-tube service between central post office and Reading Terminal Sta¬ 
tion from 11.42 a. m. to 11.51 a. m. on August 24, 1912. 

“ This failure of service was due to the blowing out of the circuit breakers on the 
switchboard at central office which operates the Reading Terminal line. 

“ The breakers were replaced, the line freed from carriers, after which the line im¬ 
mediately resumed service.” 

August 29. R,eport that the pneumatic tube performed no service between the 
Penn Square Station and central office—eastbound line—between 11.05 p. m. and 
11.25 p. m., on account of an accident to the machinery in Penn Square Station. 

On account of this interruption of service mail for the Reading Terminal from Penn 
Square Station, consisting of 51 packages, weighing 23 pounds, missed connection 
with train 11, leaving that station 11.30 p. m., and was forwarded to Reading Terminal 
for subsequent dispatch by train 49, leaving at 2 a. m.; delay of 2 hours and 30 min¬ 
utes, a,nd train 1, leaving at 4.25 a. m., delay of 4 hours and 55 minutes. 



320 


PNEUMATIC-TUBE SYSTEM. 


In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement, under date of September 4, 1912: . . . 

“We desire to acknowledge receipt of yours of the 31st ultimo, reporting failure ot 
east bound line of the pneumatic-tube service between the Penn Square Station and 
the central office from 11.05 p. m. to 11.25 p. m. on August 29, 1912. 

“This failure of service was due to the breaking of a cotter pin on the retarder 
mechanism of the transmitter located at Penn Square Station. The retarder was over¬ 
hauled by our master mechanic and the broken pin replaced as rapidly as possible, 
after which the line was immediately placed in service.” 

August 31. Report that the pneumatic tube performed no service between the 
central office and Penn Square Station from 9.55 p. m. to 10.10 p. m., owing to the 
transmitter at the central office being out of order. 

On account of this interruption 390 pounds of letter mail that should have gone 
through the tube was dispatched by regular wagon. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement, under date of September 4, 1912: 

“We desire to acknowledge receipt of yours of the 3d instant, reporting failure of 
the pneumatic-tube service between central office and Penn Square Station from 
9.55 p. m. to 10.10 p. m. August 31, 1912. 

“This failure of service was due to the breaking of a set screw on the cam controlling 
the trip valve that operates the upper gate of the transmitter located at the central 
post office end of the Penn Square Station line. The set screw was replaced by our 
master mechanic, the transmitter overhauled, and the line immediately resumed 
service.” 

September 2. Report that no service was performed by the pneumatic tube between 
the central office and Reading Terminal from 8.35 p. m. to 8.50 p. m. On account of 
this interruption pouch containing 52 pounds of mail for New York, Genesee & Buffalo 
railway post office was dispatched from this office by regular wagon, making an extra 
trip at 8.48 p. m. to connect with train 27, leaving Reading Terminal Station 9 p. m. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement, under date of September 10, 1912: 

“We desire to acknowledge receipt of yours of the 3d instant, reporting failure of 
the pneumatic-tube service between the central office and Reading Terminal from 
8.35 p. m. to 8.50 p. m. on September 2, 1912. 

“This failure of service was due to the slipping of the time lock on the Reading 
Terminal line transmitter located at the central office, and thus allowing two carriers 
to enter and block the receiver in the Reading Terminal Station. 

“The line was cleared and the time lock overhauled in the shortest possible time, 
after which the line immediately resumed service.” 

September 17. Report that the pneumatic tube performed no service between 
the central office and Bourse Station from 5.50 p. m. to 7 p. m. 

On account of this interruption of service, 780 pounds of mail that should have gone 
through the tube was transferred by regular wagon; 215 pounds of this was carried 
by an extra trip of regular wagon. There was no delay in the dispatch of the mails. 

In explanation of the irregularity, the Pneumatic Transit Co. makes the following 
statement under date of September 20, 1912: 

“We desire to acknowledge receipt of yours of the 18th instant, reporting the failure 
of the pneumatic-tube service between the central office and Bourse Station from 5.50 
p. m. to 7 p. m. on September 17,1912. This failure of service was due to the break¬ 
ing of the piston rod in the cylinder of the receiver at the central post office end of 
the Bourse line. The broken rod was removed and a new one substituted in the 
shortest possible time, so that the line was placed in service at the following scheduled 
time.” 

September 22. Report that the pneumatic tube performed no service between the 
central office and Penn Square Station, west bound line, on September 22, between 
5 p. m. and 12 p. m., September 23, 24, 25, 26, 27, and 28, all service; and from 4 
a. m. to 8 a m. on September 29, caused by a block in the line. 

During this interruption of service, the eastbound line performed full service, 
there being no interruption between Penn Square Station and central office. Dur¬ 
ing the interruption of service on the westbound line, letter mail that should have 
been carried by tube was forwarded by regular and extra wagons. These extra 
wagons were furnished by the Pneumatic Transit Co. 


pnet;matic-tube system. 


321 


The amount of mail carried by wagons is as follows: 


Date. 


Sept. 22 
Sept. 23 
Sept. 24 
Sept. 25 
Sept. 26 


Regular 

wagon. 

Extra 

wagon. 


Pounds. 

Pounds. 


698 

2,496 

Sept. 27.. 

7,016 
8,596 
8,068 
7,686 

2,904 

Sept. 28.. 

3,775 

3,553 

2,571 

Sept. 29.. 



Regular 

wagon. 

Extra 

wagon. 


Pounds. 

8,377 

7,331 

772 

Pounds. 

4,379 

390 





48,544 

20,068 


There was no delay or damage to mail during this interruption of service. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of September 30, 1912: 

“We desire to acknowledge receipt of yours of the 24th instant, reporting failure of 
pneumatic-tube service between central post office and Penn Square Station on the 
westbound line from 5 p. m., September 22, until the schedule period,of starting 
September 29, 1912. This failure of service was due to the blocking of the street at 
the point where Tenth Street crosses Commerce Street. It was necessary for us to 
tear out the existing line and rebuild it for a distance of at least 40 feet. Our work 
was hampered very much by the existing municipal obstructions in the street, as well 
as the fact that the line we were re-laying in part was directly under the line leading 
to the central office from Station S, so that our work was exceedingly difficult.” 

October 4. Report that no service was performed by pneumatic tube between Penn 
Square Station and central office on the eastbound line, from 4.35 a. m. to 12 p. m., 
and between 4 a. m. and 8.35 a. m., October 5. This interruption was caused by a 
block at the intersection of Eleventh and Filbert Streets. Full service was performed 
by the westbound line. 

At the time this interruption occurred mail from Pennsylvania Railroad train 101 
was being forwarded from Penn Square Station to the central office. Two carriers, 
one empty and the other containing 5 pounds of letter mail, were taken from the line 
at 5.30 a. m., October 4, mail being delivered at the central office 5.30 a. m. Four 
carriers containing 24 pounds of letter mail were taken from the line at 10.25 a. m., 
same date; this mail being delivered at central office 10.30 a. m. Also, one carrier con¬ 
taining 6 pounds of letter mail was taken from the line at 7.17 p. m., October 4; this 
mail was delivered to the central office 7.32 p. m. 

This interruption of service in the eastbound line caused delay of 1 hour and 10 
minutes to 5 pounds of letter mail, received by train 101; 6 hours’ delay to 24 pounds 
of letter mail from the same train; and 15 hours’ delay of 6 pounds of letter mail 
from this train on October 4. In the 6 pounds of mail delayed, received at the central 
office 7.32 p. m., were two special-delivery letters for delivery in Philadelphia, Pa. 

On October 4, 9,794 pounds of letter mail that should have gone through the tube 
from Penn Square Station to the central office was forwarded by wagon making regular 
trips; 1,166 pounds that should have been carried by tube on October 5 were forwarded 
by regular wagons on scheduled trips and regular wagons making extra trips. Total 
amount of mail carried by wagon that should have gone through the tube was 10,960 
pounds. 

The extra wagons furnished by the contractor, route 410009, under arrangement 
with the Pneumatic Transit Co., were employed for the purpose of conveying empty 
carriers between the central office and Penn Square Station for use on the westbound 
line. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of October 10, 1912: 

“We desire to acknowledge the receipt of yours of the 7th instant, reporting failure 
of the pneumatic-tube service between Penn Square Station and central office on the 
the eastbound line from 4.35 a. m. to 12 p. m., on October 4, and from 4 a. m. to 8.35 
a. m., on October 5, 1912.” 

This failure of service was due to the blocking of the eastbound line at the inter¬ 
section where the line crosses Eleventh Street and Filbert Street, which was caused 
by the street sinking on account of being undermined by a broken high-pressure 
water main. Carriers in the line at the time of the block were removed, and in 
order to repair the line it was found necessary to remove several sections of the old 
line and install new tubes in their place. The repairs were made in the shortest 
possible time, after which the line immediately resumed service. 

October 5. Report that full service by the pneumatic tube was not performed 
between the central office and Stations S, and O, between 5.44 and 9.45 a. m. 


78419—13-21 































322 


PNEUMATIC-TUBE SYSTEM. 


This partial interruption was caused by defect in the transmitter at the central office 
end of the line. 

This partial interruption of service caused 37 pounds of letter mail and 58 pounds of 
paper mail for Station 0 to be dispatched by P. & R. Tr. 719, leaving Reading Terminal 
Station 7.10 a. m., and 175 pounds of paper mail that should have been carried by 
the tube for Station S was dispatched by Philadelphia & Frankford trip 9, leaving 
central office 7.40 a. m., also interfering with the forwarding of mail from North Phila¬ 
delphia Station, owing to the fact that no carriers were received at that end of the line, 
702 pounds of letter mail that should have been dispatched by tube from North Phila¬ 
delphia Station to the central office was therefore dispatched by trains leaving North 
Philadelphia Station 7.53, 8.04, and 8.24 a. m., respectively. There was a delay to 
22 bundles of letter mail for Station S. This mail did not reach that station until 
7.03 a. m., thereby missing first carrier delivery, mail being delivered by the next 
delivery, which was 9.30 a. m.—delay of 2 hours and 30 minutes. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of October 10, 1912: 

“We desire to acknowledge the receipt of yours of the 6th instant, reporting failure 
of the pneumatic-tube line between the central post office and Stations S and O from 
5.44 to 9.45 a. m., on October 5, 1912. This partial failure of the service was due to 
the breaking of the axle on which the lower gate of the central post office transmitter 
rotates. As it was possible to make the repairs without suspending the operation of the 
line, this was done and the carriers transmitted by manipulating the lower gate by 
hand. The repairs were effected in the shortest possible time, and on their comple¬ 
tion normal service was at once resumed.” 

October 8. Report that no service was performed by the pneumatic tube on the 
westbound line between central office and Penn Square Station between 4 a. m. and 
11.07 a. m. This interruption of service was due to the installation of a new section 
of tube by the Pneumatic Transit Co. at the intersection of Eleventh and Filbert 
Streets, to replace the worn-out section at that place. During this interruption of 
service mail that should have been carried by the pneumatic tube was conveyed by 
wagons furnished by the Pneumatic Transit Co., as follows: 

Pounds. 


Letter mail by regular wagon. 1, 544 

Letter mail by extra wagon. 461 

Total. 2,005 


This interruption caused no delay in forwarding of mail, and no mail was damaged. 
Full service was performed by the eastbound line between Penn Square Station and 
central office; regular service on the westbound line was resumed 11.07 a. m., October 8. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of October 10, 1912: 

“We desire to acknowledge receipt of yours of the 9th instant, reporting that no 
service was performed by the westbound line of the pneumatic tube between central 
post office and Penn Square Station between 4 a. m. and 11.07 a. m., on October 8,1912. 

“ This failure of service was due to the fact that at the point where our pneumatic 
line crosses Eleventh Street on Filbert Street the street has been undermined by the 
breaking of a high-pressure water main, which caused our tube line to sink, and in 
order to make the proper repairs, we had to remove several sections of the old line, 
which was badly damaged, and substitute new tubes. The repairs were made in the 
shortest possible time, after which the line immediately resumed service.” 

October 9. The report that the pneumatic tube performed no service between 
Station S and Station O from 5.06 p. m. to 5.14 p. m. 

This interruption of service caused delay in the dispatch of 48 pounds of letter mail 
intended to connect New York and Pittsburgh train 44, leaving North Philadelphia 
Station 6.29 p. m., and New York and Pittsburgh train 29, leaving North Philadelphia 
Station 5.37 p. m.; 10 pounds of letter mail intended to connect train 29 was subse¬ 
quently dispatched by train 23, leaving North Philadelphia Station 7.02 p. m. Delay 
of 1 hour and 35 minutes. Twenty-seven pounds of letter mail intended for dispatch 
by train 29 were subsequently dispatched by train 45, leaving Broad Street Station at 
8.31 p. m., delay of 3 hours and 1 minute. Five pounds of letter mail intended to 
connect train 44 was subsequently dispatched by train 148, leaving North Philadelphia 
Station 7.14 p. m., delay of 1 hour and 45 minutes. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of October 26, 1912: 

“We desire to acknowledge receipt of yours of the 12th instant, reporting the failure 
of pneumatic-tube service between Station S and Station O from 5.06 p. m. to 5.14 
p. m. on October 9, 1912. 






PNEUMATIC-TUBE SYSTEM. 


323 


“ This failure of service was due to the burning out of the intake valve of the com¬ 
pressor operating the line at Station S and the breaking of both cranks that control 
the valve and the rocker-arm shaft. 

‘ ‘ The broken compressor was shut down and the reserved compressor placed in opera¬ 
tion at once, so that the service was immediately resumed.” 

November 29. Report that the pneumatic tube performed no service between 
Station S and central office from 3.25 p. m. November 29 until 1.30 a. m. November 30; 
from 5 a. m. November 30 until 1.30 a. m. December 1. and from 5 a. m. until 6.02 a. m. 
December 1. 

This interruption of service was caused by a block in the line at Tenth and Market 
Streets, which occurred about 3.25 p. m., November 29. The carrier which caused 
this block contained 6 pounds of letter mail from Station S for Penn Square Station, 
and was taken from the tube 11 a. m., November 30, a delay of 19 hours and 35 minutes. 

Another carrier containing 4 pounds of first-class mail from Station S for Reading 
Terminal (mail room) was also taken from the line at 12.05 a. m., November 30; a 
delay of 8 hours and 40 minutes. 

During this interruption of service mail was forwarded from Station S to central 
office to Philadelphia & Frankford R. P. O. circuit 5, route 310,011, and by extra 
wagons furnished by the Pneumatic Transit Co. 

The only interruption of service on the northbound line occurred on November 29, 
when 20 pounds of letter mail intended to connect N. Y. & Wash. Tr. 78, due to leave 
North Philadelphia station 4 p. m., missed dispatch by that train and was subse¬ 
quently forwarded by N. Y. & Pitts. 44, leaving North Philadelphia station 5.29 
p. m.; a delay of 1 hour and 29 minutes. 

During the interruption of service, mail was sent from Station S to the central 


office as follows: 

Pounds. 

Nov. 29. Philadelphia & Frankford R. P. 0. 172 

Nov. 29. Extra wagon.. 943 

Nov. 30. Philadelphia & Frankford R. P. 0. 814 

Nov. 30. Extra wagon. 2, 253 

Dec. 1. Extra wagon. 276 


Total. 4,458 


In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of December 3, 1912: 

“We desire to acknowledge receipt of yours of the 2d instant, reporting failure of 
the pneumatic-tube service between Station S and central office from 3.25 p. m. on 
November 29 until 1.30 a. m., November 30, from 5 a. m., November 30, until 1.30 
a. m., December 1, and from 5 a. m. until 6.02 a. m., December 1. 

“This interruption of service was due to the blocking of our tube line on Tenth Street 
near Hamilton Street., at the point where the Reading Railroad crosses Tenth Street, 
and was caused by the excavation work conducted by the railroad company under¬ 
mining our tubes and allowing them to settle. The block was located, the carriers 
removed, and the necessary repairs made as expeditiously as possible, after which 
the line was immediately placed in service.” 

December 3. Report that no service was performed by the pneumatic-tube service 
between central office and Bourse Station from 4.05 p. m. to 7 p. m. Extra wagon 
provided by the Pneumatic Transit Co. was placed in service at 4.25 p. m., and 30 
pounds of letter mail that should have gone through the tube was dispatched by extra 
wagon leaving central office 4.25 p. m.; also 14,500 pounds of letter mail that should 
have been forwarded by tube from Bourse Station to central office was received by 
regular wagon and 560 pounds by extra wagon, a total weight that should have been 
transmitted by tube, 20,404 pounds. 

In explanation of the irregularity the Pneumatic Transit Co. makes the following 
statement under date of December 18, 1912: 

“We desire to acknowledge receipt of yours of the 5th instant, reporting failure of 
the pneumatic-tube service on the central post office to Bourse Station line from 4.05 
p. m. to 7 p. m., December 3, 1912. 

“This failure of service was due to the breaking of axle supporting the upper gates 
of the transmitter of the Bourse line located at the central post office. The broken 
axle and gate of the transmitter were removed and new ones substituted in the shortest 
possible time, after which the line resumed service at the next scheduled period.” 









324 


PNEUMATIC-TUBE SYSTEM. 


EXHIBIT K, PHILADELPHIA NO. 3. 

Analysis of the Intangible Assets of the Pneumatic Transit Company. 

At the hearing held on January 8, 1913, by the commission investigating the pneu¬ 
matic mail-tube situation, there was filed by this company a document showing the 
actual cash invested in constructing its lines, in the order in which such investments 
were made, and in addition there was an estimate of the operating loss and unpaid 
salaries during the company’s history. 

The document was compiled in such a manner as to show that the actual cash in¬ 
vested in construction would constitute the first investment, and as there was no 
return during the early years in any shape whatsoever, the interest on the cost of con¬ 
struction would constitute the second investment, unpaid officers’ salaries make the 
third investment, and loss in operation is the fourth investment. 

The result is that the four items enumerated above added together constitute the 
capital invested in the business at the beginning of the ensuing year, and in the 
years when additional construction is completed the actual sum invested in new con¬ 
struction is likewise added. 

When the period is reached in the company’s history, that the operation of its 
plants begins to show a profit, the amount paid either as interest on bonds or divi¬ 
dends on stock is subtracted from the yearly interest charge on the capital invested. 

A calculated estimate arrived at in the above manner shows that on December 31, 
1912, the sum of $1,312,509 had been invested in the business comprised of the four 
items, actual cash used in construction, interest thereon, loss in operation, and unpaid 
officers’ salaries. 

The Pneumatic Transit Co. has secured all of its physical tangible assets in the shape 
of the tube lines by an issue of securities direct to the contractors who built its lines 
and plants, with the result that our books can not show the actual amount that has been 
invested in intangible assets, with the single exception of patents which were secured 
by an issue of $300,000 of stock. 

In order to estimate the value of our intangible assets it is necessary to have recourse 
to an estimate based on the known factors that enter into such a calculation in a busi¬ 
ness analagous to our own, such as a street railway. The first item to be considered 
is that of the legitimate profits of the pioneers. 

Profits of Promotion. 

If there is one fact that is well settled in the appraisement of the intangible assets 
of a corporation it is that the promoters of the enterprise are entitled to what is known 
as the profits of promotion. As our securities have all been issued in the purchase of 
physical tangible property, the profits of promotion are not available from the com¬ 
pany’s books, and it is necessary to arrive at this amount from the best available data, 
which is the amount of actual cash invested in the concern. Our available figures on 
the cost of construction show that approximately some $750,000 cash was invested 
in the business, and an appraisement of our physical tangible property will sustain 
this conclusion. A promoter’s profit of 10 per cent on this sum would be some $75,000, 
a very reasonable amount when it is considered that some 20 years’ time has been 
required to thoroughly establish the industry. 

commission on capital secured, or the equivalent thereof, in the sale of 

securities at a discount. 

This company not selling its securities for cash, but issuing them as above stated, 
has no record of any commissions paid or securities sold at a discount, but the con¬ 
tractors who gave for our securities the existing physical property would have both 
of these charges to meet in marketing their stock, and an estimate of 10 per cent on 
the amount of the physical tangible property of $750,000 would amount to $75,000, 
to cover the two items of commission and securities sold at a discount. 

As our securities in the nature of bonds pay only to the holders 5 per cent per year 
and our preferred stock 6 per cent, and our common stock has ne\er paid anything, it 
is not hard to reach the conclusion that some 4% per cent or $75,000 of their par value 
of approximately $1,700,000 has been necessary to meet the commission and discount 
on their sale or distribution. When you consider that the American Pneumatic 
Service Co., earning almost six times the amount necessary to meet the 7 per cent 
preferred dividend on its latest issue of preferred stock, preferred not only as to divi¬ 
dends but as to assets, was compelled to dispose of this stock to the underwriters at a 
7 per cent discount, our estimate of $75,000, as above outlined, is a very modest one in 
this respect. 


PNEUMATIC-TUBE SYSTEM. 


325 


Experimentation and Development. 

The contractors who received our securities had the burden not only of marketing 
them and securing the necessary money to reproduce the physical tangible property 
as required by the terms of the contract, but it was also incumbent upon them to pro¬ 
duce the best that was obtainable in the way of a pneumatic-tube system. . During the 
last 20 years this contracting company has kept a corps of draftsmen at work design¬ 
ing and constructing improvements on every feature of the system, such as pipe-boring 
plants, brass bend rolls, carrier lids, bends, transmitters, receivers, compressors, 
carriers, chronographs, dutchmen, packing rings for carriers, bypasses, intermediate 
receivers, time locks, and power devices for both electrical and steam-operated lines. 
This experimentation and development has been the necessary foundation on which 
the enterprise has reached its present state of efficiency, and to deny its importance 
and necessity would be similar to denying childhood to a man. The estimate of our 
engineers is that there has been expended in this direction at least $100,000 in the past 
20 years. 

interest on capital during construction. 

In our estimate already referred to, filed with the commission on January 8, 1913, 
we have not taken into our calculation the item which is considered in this heading, 
so that when we allow interest on the capital invested in construction during the 
period of construction we have the sum of $34,066.14. In arriving at this sum we 
have taken the total sum involved in the construction and allowed interest for the 
period of one-half a year and considered it as an additional capital invested. Although 
the company did not have to meet this charge as a direct charge the contractor who 
received the company’s securities did, and nothing is more firmly established in 
the laws relating to the value of intangible assets than that interest should be allowed 
on capital invested in construction during construction. The calculations we have 
made in regard to this item we have appended hereto. 

REPLACEMENT OF OBSOLETE MACHINERY. 

* 

No schedule of the intangible assets of a manufacturing or transportation corpor¬ 
ation would be complete which did not make allowance for the above item. In 
the reorganization of the Third Avenue Railroad, where the physical tangible assets 
were appraised at some $36,000,000 on appeal from the decision of the public-service 
commission the Appelate Court of the State of New York sustained an intangible 
asset of $6,000,000, approximately, being the cost of the change from a cable system 
to a trolley system. In our tube system in this city we have had to meet the same 
item on a number of occasions, such as at the central post office, when we displaced 
a Clayton steam compressor and substituted an electric-driven Ingersoll-Rand com¬ 
pressor in 1905; and in 1908, when we changed the type of transmitters at the Bourse 
post office; also when we made the Reading Terminal an independent line and scrapped 
two-wheel intermediates and their accompanying switches; and again in 1910, when 
we installed three electric-driven units at Broad Street Station, in the place of two 
large Ingersoll Sergeant steam compressors; and in 1912, when we installed a gravity 
transmitter at the central post-office end of the Bourse line. We estimate that a con¬ 
servative allowance for this item in the shape of our intangible assets is the sum of 
$30,000. 

LEGAL EXPENSES. 

During the 20 years’ existence of the company the cost of operation was so near, if 
not in excess of the income, that there was*very little in the way of legal expenses 
borne by the company, but the syndicate which took over the first contract, included a 
lawyer among its members, so that the legal work of the corporation was really paid 
for by the stock received by the attorney in question from the syndicate. 

We have to-day among our stockholders the widows of three deceased lawyers and 
two lawyers, all of whom received their holdings in lieu of cash payments from the 
contractors who constructed our lines. We have allowed for this item among our 
intangible assets the sum of $40,000, or approximately $2,000 per year during the 
history of the company. 

FRANCHISES. 

The contractors who built our lines in consideration of a payment in securities in 
addition to the actual construction of the lines were obligated to secure'the necessary 
permits and franchises. 

In securing these permits and franchises it was necessary to secure the service of 
counsel, as well as to work up public sentiment by judicious advertisements, secure 


326 


PNEUMATIC-TUBE SYSTEM. 


the signature of citizens to petitions in favor of the granting of the same by the muni¬ 
cipal bodies, wait upon the mayor, pay the fees of printing, etc. On one occasion 
it was necessary for the contractors, in order to prevent their ordinance from lapsing, 
to lay several hundred feet of 8-inch tube line on Spring Garden Street, which begins 
nowhere and ends a short distance away. 

We estimate that while there was no direct charge for the ordinances and only a 
nominal fee for the permits per se, the amount which we are justified in considering 
as an intangible asset of the company under this head is the sum of $20,000. 

PATENTS, 

The value of a patent or set of patents covering a system or process consists in the 
fact that it clearly defines the features that are essential to the exploitation of such 
system or process as distinguished from those which are common to the arts of the 
day, and thus to a considerable extent secures the owner against interference in the 
conduct of his business. 

It was absolutely essential at the outset that the promotors of this company should 
know that the system they were about to install under the agreement with the Post¬ 
master General infringed no patents; and, furthermore, that once installed it could 
not be appropriated by others who had had the advantage of seeing it in operation. 
For if the contracts had to be tendered for each time they expired or extensions were 
proposed in competition with any irresponsible “straw bidder,” the risk of loss of 
the original investment would be absolutely prohibitive. 

Of the patents which this company secured originally, several have now expired; 
but the apparatus covered by them had already become obsolete, and the company 
has never enjoyed more ample patent protection than it does to-day. The earliest 
patents were fundamental, while the most recent ones relate more to refinements; 
but as the types of apparatus become more or less standardized the art is narrowed 
so that the improvements in detail assume an importance hardly less than that pos¬ 
sessed by fundamental principles during the initial stages of the enterprise. Although 
the standard types are now well fixed, recent improvements in detail have therefore 
assured to the company protection for many years to come. 

The value of a set of patents is very difficult to calculate mathematically. The 
best guide in arriving at the value is perhaps the amount that business men of sound 
judgment and successful records are willing to pay and accept for them. 

The patents of the company are carried upon its books at $300,000, of which sum 
$200,000 is the price paid for the original patents and $100,000 the price paid for patents 
subsequently acquired. 

ABANDONMENT OF LINES. 

» 

One of the heavy expenses to which a pneumatic-tube company is subjected to 
under the terms of their contract with the Post Office Department is that of the aban¬ 
donment of lines on account of the removal of the postal stations. In 1906 when the 
Broad Street Station to the central post office via Reading Terminal line was made a 
direct line some twenty-two one-liundreths of a mile of line was abandoned and in 1895 
when the East Chestnut Street postal station was moved to the Bourse postal station 
some 400 feet of line was rendered worthless. It is estimated by our engineers that 
the company has been subjected to a loss of approximately $20,000 from this cause 
alone during its history. 

to recapitulate. 

The various items in the nature of intangible assets possessed by the company are as 
follows: 


Profits of promotion. $75, 000. 00 

Commissions and discount. 75, 000. 00 

Experimentation and development. 100. 000. 00 

Interest on capital during construction. 34, 066.14 

Replacement of obsolete machinery. 30 000. 00 

Legal expenses. 40, 000. 00 

Franchises. 20, 000. 00 

Patents.*. 300,000.00 

Abandonment of lines. 20. 000. 00 


Total. 694,066.14 


When the above sum is added to the sum $1,312,509 already filed with the com¬ 
mission and compiled as aforesaid the total is $2,006,575.14, the value of all of the 
company’s property including both tangible and intangible property. 













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PNEUMATIC-TUBE SYSTEM. 


327 


Interest on capital during construction. 


Bourse construction $42,000, interest thereon for 6 months $1,260, and as 
this constitutes an investment and is unpaid, then the interest on it is 

compounded until Dec. 31, 1912, the amount is.$4, 068. 00 

Broad Street Station to central post-office construction $60,000, interest 

thereon for 6 months $1,800, compounded until Dec. 31, 1912. 4, 313. 69 

Central post office to station S and O construction $175,700, interest thereon 

for 6 months compounded until Dec. 31, 1912. 7, 816. 48 

Broad Street Station, J. & C. construction $154,030, interest thereon for 6 

months $4,620.90, compounded until Dec. 31, 1912. 6,183.72 

Southwark, D. & Reading construction $170,000, interest thereon for 6 

months $5,100, compounded until Dec. 31, 1912. 6,438.63 

North Philadelphia and Fairhill construction $117,000, interest thereon for 
6 months $3,510, compounded until Dec. 31, 1912. 3, 943. 83 


Total. 32,364.35 


EXHIBIT M.—CHICAGO NO. 1. 

Inventory. 

PROPERTY OF CHICAGO POSTAL PNEUMATIC TUBE CO., FEB. 27, 1913. 


SHOP EQUIPMENT. 


1 drill press. 

1 motor grinder. 

1 lathe. 

Soldering apparatus.. 

Miscellaneous tools. 

Carrier parts. 

Machine parts, etc. 

Shop motor, and panel, benches, racks, etc 


STREET EQUIPMENT. 


Force pump. 
Rods. 


Miscellaneous drills. 

Picks. 

Shovels, etc., for street work. 

Spare bends. 

Closures, etc. 

Emergency Dutchman. 


GENERAL POST OFFICE TERMINALS. 


Year 

installed. 


1911 


1911 


1905 

1911 

1911 

1911 

1911 


1907 


3 sluice gate open receivers, Nos. 227, 239, 243 

3 gravity transmitters, Nos. 226, 238, 242. 

1 motor-driven time lock, No. 288. 


1904 

1 1911 

2 1910 
1912 


} 


POWER PLANT, CANAL STATION. 

1 50-horsepower direct-connected motor-driven Connersville blower, 
No. 266. 

1 75-horsepower direct-connected motor-driven Laid law Dunn 
Gordon compressor, No. 265. 

2 switch panels, Nos. 267,305. 

1 receiver tank, No. 264. 

ILLINOIS CENTRAL STATION TERMINAL. 

2 sluice-gate closed receivers, Nos. 245, 255. 

2 gravity transmitters, Nos. 244, 254. 

1 motor-driven time lock, No. 287. 

TWENTIETH STREET STATION TERMINALS. 

1 sluice-gate closed receiver, No. 257 . 

1 gravity transmitter. No. 256. 


1911 

1911 

1911 

1911 


1904 

1910 

1912 


1911 

1911 


Cost. 


Condition. 


Poor. 

Do. 

Do. 


$50.00 
150.00 
50.00 


Good. 

Fair. 

New. 


300.00 


Good. 


50.00 
10.00 
50.00 
175. 00 


Fair. 

Good. 

Do. 

Do. 

Fair. 


1,440.00 


Good. 


2,400.00 Good. 
1,875.00 Do. 


75.00 


Do. 


3,000.00 


Good. 


5,000.00 Do. 


600.00 


Do. 

Do. 


2,700.00 
1,250.00 
75.00 


Good. 

Do. 

Do. 


1,350.00 | Good. 
625.00 I Do. 


i Two. 


2 One. 


















































328 


PNEUMATIC-TUBE SYSTEM. 


Inventory —Continued. 


PROPERTY OF CHICAGO POSTAL PNEUMATIC TUBE CO., FEB. 27, 1913—Continued. 


ARMOUR STATION TERMINALS. 

2 revolving-valve open receivers, Nos. 249,253. 

2 gravity transmitters, Nos. 248, 252. 

POWER PLANT, GENERAL POST OFFICE, LINE. 

3 Laidlaw Dunn Gordon duplex belt-driven compressors, Nos. 273, 
274, 275. 

3 90-horsepower General Electric motors, Nos. 276, 277,278. 

1 remote-control panel board. 

3 standard panel boards. 

2 receiver tanks. 

1 Reliance ammeter, scale 0 to 50. 

Foregoing panel mounted on angle-iron legs... 

Piping, basement, 6 extension-service stubs capped for service. 

Valves: 

Thirteen 8f Crane gate valves. 

One 4-inch Crane gate valve. 

1 safety valve. 

One 8§-inch check valve. 

1 receiver tank, tube company’s No. 264. 

Air time lock: 

1 transmitter air time lock, tube company’s No. 296, inclosed in 
wooden case with glass door. 

1 one-thirtieth horsepower, General Electric, direct-current shunt 
motor, No. 67166, speed, 1,700 revolutions per minute. 

1 iron Cutler-Hammer controller, 220 ohm, 0.75 ampere capacity. 


Year 

installed. 

Cost. 

Condition. 

1908 

$1,600.00 

Good. 

1908 

1,250.00 

Do. 

1904 

6,700. 00 

Need re- 



pairs, etc. 

/ i 1904 \ 

\ 2 1908 / 

3,300.00 

Good. 

1908 ' 

50.00 

Fair. 

1910 

900.00 

Good. 

1904 

200.00 

Do. 

First class. 


Do. 

Do. 

Good. 

Do. 

Do. 

Do. 

Do. 

Do. 


Do. 

Do. 


MAIN OFFICE. 


2 Crosby indicators. 



Good. 

Bushnell reducing motion, complete. 



Do. 

New pulley and guide for string needed, estimated value $70. 



Do. 

Fifty-four 12-foot lengths 8-fin(Tcast-iron pipe (in storage at Armour 
station). 


$1,065.90 




CANAL STATION. 


1 Pratt & Whitney 12-inch sweep lathe. 

1 No. 19 Fay drill press. 

1 Hanson & Van Winkel emery grinder and buffer. 

1 main countershaft, length 22 feet 2 inches, diameter 2 inches. 

3 individual countershafts; length 4 feet, 1 inch diameter.. 

1 pulley, wooden, size 35f inches, lf-inch bore.. 

1 pulley, wooden, size 17f inches, lf-inch bore. 

1 pulley, wooden, size 7-inches, 1| inch bore. 

1 pulley, wooden, size 6 inches, lf-inch bore. 

1 pulley, iron, size 5f inches, lf-inch bore. 

1 pulley, iron, size 9f inches, 1-inch bore. 

1 pulley, iron, size 7| inches, 1-inch bore. 

1 pulley, iron, size 5^ inches, f-inch bore. 

1 differential pulley, iron, size 9f inches, lf-inch bore. 

1 iron reversing pulley, size 10 inches, lf-inch bore. 

1 iron pulley, size 10 inches, lf-inch bore. 

1 wooden pulley, size 16 inches, lf-inch bore. 

1 wooden pulley, size 7f inches, bore If inches. 

1 iron pulley, size 7§ inches, bore If inches. 

Belts: * 

2 leather belts 14 feet by If inches. 

1 leather belt 17 feet 4 inches by 3f inches. 

1 canvas belt 27 feet 8 inches by 4 inches. 

Motor: 

One 5-horsepower General Electric form A shunt motor, 220-volt, 
19 amperes, speed 1,100, tube company’s No. 307. 

1 slate panel board for above motor 12 by 30 inches by f-inch diam¬ 
eter. 

One 40-ampere 2-pole knife switch. 

Two 50-ampere fuses. 


Poor. 

Do. 

Do. 

Do. 

Fair. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 


First class. 

Do. 

Do. 

Do. 


1 Two. 


2 One. 


/ 











































































PNEUMATIC-TUBE SYSTEM 


329 


Inventory —Continued. 

GENERAL POST OFFICE. 


POWER PLANT. 

1 75-horsepower Laidlaw-Dunn-Gordon duplex steam compressor, No. 
272. 

3 75-horsepower Rand Drill Co. duplex steam compressors, Nos. 269, 
270,271. ’ 

1 ventilating engine, No. 268. 

1 panel board. 

3 receiver tanks. 


KLNZIE STREET STATION TERMINALS. 


1 revolving-valve closed receiver, No. 241. 
1 gravity transmitter, No. 240. 


LA SALLE STREET STATION TERMINALS. 


2 sluice-gate closed receivers, Nos, 229, 237. 

2 gravity transmitters, Nos. 228, 236. 

1 motor time lock, No. 289. 


STATION U TERMINALS. 

2 revolving-valve closed receivers, Nos. 231, 235. 

2 gravity transmitters, Nos. 230, 234.. 

1 motor time lock, No. 285.. 


CANAL STREET STATION TERMINALS. 


1 transmitter, No. 232.. 

1 revolving-valve open receiver, No. 233. 
1 motor-driver, time lock, No. 286. 


STOCK YARDS STATION TERMINALS. 


1 sluice gate closed receiver, No. 251 
1 gravity transmitter, No. 250. 


HARRISON STREET TUNNEL. 

1 motor property of telephone company but claimed by tube company. 
1 pump. 


CANAL STATION. 


1 spare transmitter. 

1 revolving valve open receiver, spare. 


ARMOUR STATION. 


1 spare open receiver. 
1 spare transmitter.. 


HYDRAULIC ENGINEERING WORKS. 

1 revolving closed receiver, no table (stored). 

GENERAL POST OFFICE. 

Spare sections, enough of gravity transmitter to make up 3. 

Miscellaneous parts for open and closed receivers. 

Estimated cost of tools in engine rooms and terminal rooms. 

Length of tubing in use 19.2034 miles. 

Street vaults, 80. 

Bends, 115 pairs, i. e., 231 sets. 

Closures, 29. 

Drips, 79. % . 


Dutchmen, 1. 

Number of carriers, 450 per set. 


Year 

installed. 


1904 

1904 

1904 

1904 

1904 


1912 

1910 


1904 

1910 

1912 


1911 

1911 

1912 


1911 

1911 

1912 


1908 

1904 


1910 

1906 


1903-4 

( 2 ) 


1911-12 


Cost. 


$4,000.00 

12,000.00 


50.00 
300.00 


1,350.00 
625.00 


2,700.00 
1,250.00 
75.00 


2,700.00 
1,250.00 
75.00 


625.00 
800.00 
75.00 


1,350.00 
625.00 


125.00 


625.00 
1,350.00 


800.00 
625.00 


1,875.00 
500.00 
457.59 
167,300.02 


14,291.00 


9,750.00 


Condition. 


Needs re¬ 
pairs. 

Fair. 

Good. 

Do. 


Good. 

Do. 


Fair. 

Good. 

Do. 


Good. 

Do. 

Do. 


Good. 

Do. 

Do. 


0 ), 

Fair. 


Fair. 

Poor. 


Good. 

Do. 


1,350.00 I Good. 


Fair. 

Good. 


Inopera¬ 

tive. 

Good. 

Poor. 


i Fair; casting cracked. 


2 1003-1011 inulnciTra 


Total, 975. 

Note.—N ecessary air piping, auxiliary piping, wiring tools, etc., included with equipment. 


















































330 


PNEUMATIC-TUBE SYSTEM 


EXHIBIT N, CHICAGO NO. 2. 

Interruption and suspension of tube service in line to and from the general post office and 
La Salle Street tube station from Jan. 1 to Dec. 31, 1912. 


Jan. 


Date. 


Time. 


17,1912 


11.31 a. in. to 11.45 a. m... 


Jan. 24,1912 
Jan. 25,1912 
Mar. 16,1912 
Mar. 19,1912 
Apr. 6,1912 
Apr. 17,1912 
Apr. 19,1912 
June 12,1912 
July 10,1912 
July 11,1912 
July 12,1912 
July 18,1912 
July 20,1912 
July 23,1912 
July 24,1912 
July 25,1912 
July 31,1912 
Aug. 6,1912 

Do. 

Aug. 20,1912 
Aug. 24,1912 
Sept. 6,1912 
Sept. 18,1912 
Sept. 26,1912 
Sept. 27,1912 
Sept. 30,1912 ! 
Oct. 5,1912 
Oct. 12,1912 
Oct. 18,1912 
Oct. 19,1912 
Oet. 22,1912 

Do. 

Oet. 24,1912 
Oct. 30,1912 
Oct. 31,1912 
Nov. 1,1912 
Nov. 2,1912 
Nov. 4,1912 
Nov. 5,1912 
Nov. 8,1912 
Nov. 11,1912 
Nov. 27,1912 

Do. 

Nov. 28,1912 
Dec. 7,1912 
Dec. 9,1912 
Dec. 11,1912 
Dec. 18,1912 
Dec. 21,1912 
Dec. 23,1912 

Do. 

Dec. 25,1912 
Dec. 30,1912 


3.38 p. m. to 10.17 p. m. 

9.56 a. m. to 11.50 a. m. 

4.20 p. m. to 4.26 p. m. 

11.32 p. m. to 1 a. m. Mar. 20 
8.28 p. m. to 8.40 p. m. 

4.21 p. m. to 4.55 p. m. 

8.20 a. m. to 8.45 a. m. 

5.30 a. m. to 5.34 a. m. 

3.12 p. m. to 3.24 p. m. 

9.50 a. m. to 1.57 p. m. 

6.40 p. m. to 8.57 p. m. 

7.58 p. m. to 9.24 p. m. 

11.24 p. m. to 11.55 p. m. 

4.05 p. m. to 4.41 p. m. 

6.31 p. m. to 1 a. m. July 25 . 

2.07 p. m. to 2.13 p. m. 

10.42 p. m. to 10.50 p. m. 

5.53 p. m. to 6.25 p. m. 

7.50 p. m. to 8.25 p. m. 

6.04 p. m. to 6.31 p. m. 

5.48 p. m. to 6.48 p. m. 

4.20 p. m. to 6.12 p. m. 

1.18 p. m. to 2.07 p. m. 

6.10 p. m. to 6.51 p. m. 

3.14 p. m. to 3.35 p. m. 

4.55 p. m. to 5.38 p. m. 

3.42 p. m. to 4.30 p. m. 

6.57 p. m. to 7.15 p. m. 

8.47 p. m. to 9.14 p. m. 

1.24 a. m. to 1 a. m. Oct. 20.. 

12.10 p. m. to 1.04 p. m. 

5.33 p. m. to 6 p. m. 

10.42 a. m. to 11.05 a. m. 

10.45 p. m. to 1 a. m. Oct. 31. 

2.57 p. m. to 1 a. m. Nov. 1.. 

5 a. m. to 1 a. m., Nov. 2_ 

5 a. m. to 1 a. m., Nov. 3_ 

5 a. m. to 6.15 a. m. 

8.37 a. m. to 10.16 a. m. 

11.51 a. m. to 1.18 p. m. 

6.10 a. m. to 7.48 a. m. 

7.48 a. m. to 7.52 p. m. 

8.17 p. m. to 1 a. m., Nov. 28 

5 a. m. to 11.31 p. m. 

2.35 p. m. to 2.52 p. m. 

12.43 p. m. to 1 p. m. 

5.26 p. m. to 6.01 p. m. 

8.50 p. m. to 9.30 p. m. 

11.12 a. m. to 3.32 p. m. 

5.45 p. m. to 8.05 p. m. 

10.47 p. m. to 10.49 p. m. 

6.05 p. m. to 9.11 p. m. 

10.22 a. m. to 11.24 a. m. 


Cause. 


Defective transmitter at La Salle Street 
tube station. 

Open carrier. 

Do. 

Unknown. 

Do. 

Block at Canal station. 

Unknown. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Open carrier. 

Unknown. 

Do. 

Do. 

Do. 

Do. 

Do. 

Open carrier. 

Unknown. 

Do. 

Do. 

Do. 

Do. 

Open carrier. 

Unknown. 

Open carrier. 

Unknown. 

Block in line. 

Unknown. 

Do. 

Do. 

Do. 

Block in line. 

Do. 

Do. 

Do. 

Unknown. 

Do. 

Do. 

Do. 

Block in line. 

Unknown. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 


Interruption and suspension of tube service in line to and from the La Salle Street and 

Union tube stations from Jan. 1 to Dec. 31, 1912. 


Date. 

Time. 

Cause. 

Jan. 17,1912 

11.05 a. m. to 11.45 a. m. 

Defective transmitter at La Salle Street 
tube station. 

Jan. 18,1912 

9.04 a. m. to 9.07 a. m. 

Unknown. 

Jan. 24,1912 

3.38 p. m. to 1 a. m., Jan. 25. 

Open carrier. 

Jan. 25,1912 

5 a. m. to 11.50 a. m. 

Do. 

Feb. 11,1912 

10.55 a. m. to 11.10 a. m. 

Unknown. 

Mar. 16,1912 

4.15 p. m. to 4.27 p. m. 

Do. 

Mar. 19,1912 
Apr. 6,1912 

11.15 p. m. to 1 a. m., Mar. 20. 

Do. 

8.28 p. m. to 8.40 p. m. 

Block at Canal Station. 

Apr. 17,1912 

4.16 p. m. to 4.56 p. m.,. 

Unknown. 

Apr. 19,1912 

8.20 a. m. to 8.45 a. m.-. 

Do. 

























































































PNEUMATIC-TUBE SYSTEM. 


331 


Interruption and suspension of tube service in line to and from the La Salle Street and 
Union tube stations from Jan. 1 to Dec. .31, 1912—- Continued. 


Date. 

Time. 

Cause. 

July 10,1912 

3.12 p. m. to 3.24 p. m. 

Unknown. 

Do. 

Do. 

Do 

July 11,1912 

9.35 a. m. to 1.57 p. m.... 

July 12,1912 

6.40 p. m. to 8.57 p. m. 

July 18,1912 

7.54 p. m. to 9.28 p. m. 

July 20,1912 

11.15 p. m. to 11.58 p. in. 

Open carrier. 

Unknown. 

Do. 

Do. 

Do. 

Do. 

Open carrier. 

Unknown. 

Do. 

Do. 

Do. 

Do. 
i Do. 

Do. - 
Do. 

Open carrier. 

Unknown. 

Do. 

Do. 

Do. 

Do. 

Do. 

Block in line. 

Unknown. 

Do. 

Do. 

Do. 

Do. 

Do. 

Block in line. 

Do. 

Do. 

Do. 

Unknown. 

Do. 

Do. 

Do. 

July 23,1912 

4.05 p. m. to 4.40 p. m. 

July 24,1912 

6.22 p. m. to 1 a. m., July 25. 

July 31,1912 

10.42 p. m. to 10.50 p. mi. 

Aug. 6,1912 

5.52 p. m. to 6.25 p. m. 

Do. 

7.50 p. m. to 8.27 p. m. 

Aug. 20,1912 

6.05 p. m. to 6.35 p. m. 

Aug. 24,1912 

5.40 p. m. to 6.48 p. m. 

Sept. 6,1912 

4.20 p. m. to 6.12 p. m. 

Sept. 17,1912 

8.45 p. m. to 9.05 p. m. 

Sept. 18,1912 

1.20 p. m. to 2.07 p. m. 

Sept. 19,1912 

2.45 p. m. to 3 p. m. 

Sept. 20,1912 

8.20 a. m. to 8.37 a. m. 

Sept. 26,1912 

6.20 p. m. to 6.51 p. m. 

Sent. 27,1912 

3.14 p. m. to 3.35 p. m. 

Sept. 30,1912 

4.35 p. m. to 5.37 p. m. 

Oct. 4,1912 

9.45 p. m. to 9.52 p. m. 

Oct. 5,1912 

3.35 p. m. to 4.30 p. m. 

Oct. 11,1912 

7.12 a. m. to 7.25 a. m. 

Oct. 16,1912 

5.00 a. m. to 5.32 a. m. 

Oct. 18,1912 

8.47 p. m. to 9.14 p. m. 

Oct. 19,1912 

5.25 a. m. to 5.43 a. m. 

Do. 

7.25 a. m. to la. m., Oct. 20. 

Oct. 22,1912 
Do. 

10.15 a. m. to 10.22 a. m. 

12.10 p. m. to 1.04 p. m. 

Do. 

5.33 p*. m. to 6 p. m. 

Oct. 23,1912 

3.25 p. m. to 3.48 p. m .. 

Oct. 24,1912 

10.42 a. m. to 11.05 a. m. 

Oct. 30,1912 

10.45 p. m. to 1 a. m., Oct. 31. 

Oct. 31,1912 

2.57 p. m. to la. m., Nov. 1. 

Nov. 1,1912 1 

5 a. in. to 1 a. m., Nov. 2. 

Nov. 2,1912 1 

5 a. m. to 1 a. m.' Nov. 3. 

Nov. 4,1912 

5 a. m. to 6.15 a. m . 

Nov. 5,1912 

8.37 a. m. to 10.16 a. m . 

Nov. 8,1912 

11.45 a. m. to 1.19 p. m . 

Nov. 11,1912 

6.10 p. m. to 8.40 p. m . 

Nov. 22,1912 

8.02 a. m. to 8.10 a. m . 

Nov. 27,1912 

7.48 p. m. to 7.52 p. m . 

Do 

Do. 

8.17 p. m. to 1 a. m., Nov. 28. 

Block in line. 

Unknown. 

Nov. 28,1912 

5 a. m. to 11.31 p. m . 

Dec. 3,1912 

11.25 p. m. to 11.47 p. m. 

Do. 

Dec. 7,1912 

2.33 p~. m. to 2.55 p.Tn . 

Do. 

Dec. 9,1912 
Dec. 11,1912 

12.43 p. m. to 1 p. in . 

Do. 

5.20 pi m. to 6.07 p. m . 

Do. 

Dec. 18,1912 

8.30 p. m. to 9.30 p. m . 

Do. 

Dec. 21,1912 

11.09 a. m. to 3.3l"p. m . 

Do. 

Dec. 23,1912 

3.47 p. m. to 4 p. m . 

Do. 

Do... 

5.40 p. m. to 8.03 p. m. 

Do, 

Dec. 26,1912 

5.50 p. m. to 9.15 p. m. 

Do. 

Dec. 27'1912 

2.43 p. m. to 2.56 p. m . 

Do. 

Dec. 30,1912 

10.20 a. m. to 11.24 a. m. 

Do. 



Interruption and suspension of tube service in line to and from the Union and Canal tube 

station from Jan. 1 to Dec. .31, 1912. 


Date. 


Jan. 24,1912 
Jan. 25,1912 
Feb. 21,1912 
Mar. 7,1912 
Mar. 16,1912 
Mar. 19,1912 
Apr. 2,1912 
Apr. 6,1912 
Apr. 17,1912 
Apr. 19,1912 
July 11,1912 
July 12,1912 
July 15,1912 
July 18,1912 


Time. 


Cause. 


j 3.38 p. m. to 1 a. m. Jan. 25 . 

| 5 a. m. to 11.50 a. m. 

4.32 p. m. to 4.58 p. m. 

11.21 p. m. to 11.38 p. m. 

| 4.32 p. m. to 4.28 p. m. 

| 11.25 p. m. to 1 a. m. Mar. 20 

j 5.50 p. m. to 10.35 p. m. 

8.28 p. m. to 8.40 p. m. 

4.24 p. m. to 4.56 p. m. 


Open carrier. 

Do. 

Unknown. 

Do. 

Do. 

Do. 

Do. 

Block at Canal Station. 
Unknown. 


8.20 a. m. to 8.45 a. m.. 
10.15 a. m. to 1.57 p. m 
6.40 p. m. to 8.57 p. m. 
4.19 p. m. to 4.30 p. m. 
7.55 p. m. to 9.23 p. in. 


Do. 

Do. 

Do. 

Do. 

Do. 
































































































332 


PNEUMATIC-TUBE SYSTEM. 


Interruption and suspension of tube service in line to and from the Union and Canal tube 

station from Jan. 1 to Dec. 31, 1912 —Continued. 




Date. 

Time. 

Cause. 

July 20,1912 

11.06 p. m. to 11.55 p. m. 

Open carrier. 

Julv 23,1912 

4.10 p. m. to 4.40 p. m. 

Unknown. 

July 24,1912 

6.22 p. m. to 1 a. m. July 25. 

Do. 

Aug. 6,1912 

5.45 p. m. to 6.25 p. m. 

Do. 

Do 

7 48 p. m. to 8.26 p. m. 

Do. 

Aug. 20,1912 

6.05 p. m. to 6.35 p. m. 

Open carrier. 

Aug. 24,1912 

5.41 p. m. to 6.47 p. m. 

Unknown. 

Sept. 6,1912 

4.23 p. m. to 6.13 p. m. 

Do. 

Sept. 17,1912 

8.45 p. m. to 9.05 p. m. 

Do. 

Sept. 18,1912 

1.50 p. m. to 2.07 p. m. 

Do. 

Sept. 20,1912 

8.15 a. m. to 8.37 a. m. 

Do. 

Do 

4.03 p. m. to 5.12 p. m. 

Do. 

Sept. 26,1912 

4.53 p. m. to 5.05 p. m.... 

Do. 

Do 

6.12 p. m. to 6.52 p. m. 

Do. 

Sept. 27,1912 

3 p. in. to 3.35 p. m. 

Do. 

Sept. 30,1912 

4.40 p. m. to 5.37 p. m. 

Open carrier. 

Oct. 4,1912 

9.45 p. m. to 9.57 p. m. 

Unknown. 

Oct. 5,1912 

3.38 p. m. to 4.30 p. m. 

Do. 

Oct. 11,1912 

7.12 a. m. to 7.25 a. m. 

Do. 

Oct. 16,1912 

5.05 a. m. to 5.32 a. m. 

Do. 

Oct. 18,1912 

8.53 p. m. to 9.12 p. m. 

Do. 

Oct. 19,1912 

7.24 a. m. to 1 a. m. Oct. 20. 

Block in line. 

Oct. 22,1912 

10.15 a. m. to 10.22 a. m. 

Unknown. 

Do . 

12.10 p. m. to 1.04 p. m. 

Do. 

Do 

5.35 p. m. to 6 p. m. 

Do. 

Oct. 23,1912 

3.20 p. m. to 3.46 p. m. 

Do. 

Oct. 24,1912 

10.45 a. m. to 11.07 a. m. 

Do. 

Oct. 30,1912 

10.45 p. m. to 1 a. m. Oct. 31. 

Do. 

Oct. 31,1912 

2.57 p. m. to 1 a. m. Nov. 1. 

Block in line. 

Nov. 1,1912 

5 a. m. to 1 a. m. Nov. 2. 

Do. 

Nov. 2,1912 

5 a. m. to 1 a. m. Nov. 3. 

Do. 

Nov. 4,1912 

5 a. m. to 6.15 a. m. 

Do. 

Nov. 5,1912 

8.33 a. m. to 10.04 a. m. 

Unknown. 

Nov. 8,1912 

11.46 a. m. to 1.17 p. m. 

Do. 

Nov. 11,1912 

6.03 p. m. to 8.48 p. m. 

Do. 

Nov. 14,1912 

10.16 p. m. to 10.37 p. m. 

Do. 

Nov. 22,1912 

8.02 a. m. to 8.10 a. m. 

Do. 

Nov. 27,1912 

8.17 p. m. to 1 a. m. Nov. 28. 

Block in line. 

Nov. 28,1912 

5 a. m. to 11.31 p. m. 

Unknown. 

Dec. 7,1912 
Dec. 9,1912 

2.43 p. m. to 2.55 p. m. 

Do. 

12.43 p. m. to 1 p. m. 

Do. 

Dec. 11,1912 

5.15 p. m. to 6.05 p. m. 

Do. 

Dec. 18,1912 

7.35 p. m. to 9.30 p. m. 

Do. 

Dec. 21,1912 

11.12 a. m. to 3.32 p. m. 

Do. 

Dec. 23,1912 

3.42 p. m. to 4 p. m. 

Do. 

Do. 

6 p. m. to 8 p. m. 

Do. 

Dec. 26,1912 

5.50 p. m. to 9.12 p. m. 

Do. 

Dec. 30,1912 

10.15 a. m. to 11.24 a. m. 

Do. 

Interruption and suspension of tube service in line to and from the general post office and 

Kinzie tube station from Jan. 1 to Dec. 31, 1912. 

Date. 

Time. 

Cause. 

Oct. 30,1912 

3.30 p. m. to 3.50 p. m. 

Unknown. 

Nov. 4,1912 

1.35 p. m. to la. m., Nov. 5. 

Block in line caused by d6bris from old 
Chicago & North Western depot, 
which was being wrecked, falling, 
therebv causing a break in the line. 

Nov. 5,1912 

5 a. m. to 10.10 a. m. 

Do. 

Dec. 4,1912 

12.45 p. m. to 10.45 p. m. 

Unknown. 













































































PNEUMATIC-TUBE SYSTEM. 333 


Interruption and suspension of tube service in line to and from the general post office and 
Illinois Central tube station from Jan. 1 to Dec. 31, 1912. 


Date. 

Time. 

Cause. 

Julv 25,1912 

5.29 p. m. to 5.45 p. m. 

Unknown. 

Do. 

July 30,1912 

6.41 p. m. to 7.45 p. m. 

Aug. 10,1912 

7.44 a. m. to 1 a. m., Aug. 11. 

lane depressed and broken in State 
Street at a point near Jackson Boule¬ 
vard, caused by erection of a new 
building. 

Do. " 

Aug. 12,1912 

5 a. m. to 1 a. m., Aug 13. 

Aug. 14,1912 

5 a. m. to 1a.m., Aug. 15. 

Do. 

Aug. 15,1912 

5 a. m. to 1 a. m., Aug. 16. 

Do. 

Do. 

Aug. 16,1912 

5 a. ra. to 1 a. m. Aug. 17. 

Aug. 17,1912 

5 a. m. to 4 p. m.... 

Do. 

Unknown. 

Sept. 27,1912 

4.05 p. m. to 4.21 p. m. 

Oct. 7,1912 

6.15 p. m. to 7.55 p. m.... 

Do. 

Oct. 22,1912 

6.10 p. m. to 6.22 p. m. 

Do. 

Nov. 5,1912 

11.20~p. m. to 11.41 p. m. 

Do. 

Nov. 9,1912 

3.55 p. m. to 4.47 p. m. 

Do. 




Interruption and suspension of tube service in line to and from the Illinois Central, 
Twentieth Street Station, Armour and Stock Yards Stations from Jan. 1 to Dec. 
31, 1912. 


Date. 

Time. 

Cause. 

Jan. 10,1912 

11 a. m. to 9 p. m. 

Defective joint in line. 


Between Armour and Stock Yards Stations. 

- . 

Jan. 11,1912 

5 a. m. to 1.32 p. m. 

Block in line. 

June 29,1912 

12.02 p. m. to 12.47 p. m. 

Unknown. 

Aug. 16,1912 

8.15 p. m. to 9 p. m. 

Do. 

Sept. 5,1912 

8.48 a. m. to 9.25 a. m. 

Do. 

Oct. 21,1912 

4.05 p. m. to 4.25 p. m... 

Do. 


Boston, Mass., March 18, 1913. 

Mr. Alfred Brooks Fry, 

Consulting Engineer, 121 Customhouse Building, New York City. 

Dear Sir: I have your letter of March 17, referring to our previous correspondence 
in the matter of interruptions to the postal pneumatic-tube service in our Chicago 
system, etc. 

I note that you have received a letter from the postmaster of Chicago which gives 
his reason for the form of report sent to me on February 24 last for comment. I trust 
that my reply to you under date of February 26 fully explained the fact that the 
Chicago reports are made on a different basis than are those made in Boston, Brooklyn, 
New York, and St. Louis. As I there stated, it would seem, provided that a com¬ 
parison is to be made under this subject between the different cities, that either the 
reports in Chicago should be made out as the reports are in the other cities, or that 
the reports in the other cities should be put on the same basis as are the Chicago reports. 

I also acknowledge your request that in connection with the 84 stoppages in the 
Chicago system during the calendar year of 1912, I fill out a sheet which you inclosed, 
the headings on this sheet being a separation of the different causes of trouble to this 
pneumatic-tube system during the year; and in this connection I note your statement 
that the postmaster in his reply to your letter did not give you this information, and 
therefore you are writing to me for it. 

This information is available in my office, and I shall be very glad to put it at your 
disposal. As a matter of fact, however, and as I think I indicated in my letter of 
February 26, a formal report is made to the Chicago post office in connection with all 
these accidents, and wherever possible the reason for the accident is given. In other 
words, the Chicago post office has received from us the same information that has been 
furnished under similar conditions to the post offices at Boston, Brooklyn, New Y r ork, 
and St. Louis. I suggest, therefore, that this information might have more weight 
with you if it were secured from the Chicago post office instead of from this company. 
If, however, it is impracticable because of lack of time to get this information from this 
source, I know that if you will consult with Mr. B. C. Batcheller, the chief engineer 
of our company, he can give you some material aid on this question. 

I assume from the correspondence which I have had with you, and also from the talk 
which I recently had with you, that you are finding it difficult to reconcile the reports 








































334 


PNEUMATIC-TUBE SYSTEM. 


of the interruptions to service in Chicago with the reports of similar kind in the other 
cities, since the apparent large number of interruptions per mile in Chicago during 
the year in no way checks up with the records in these other cities. I endeavored 
to explain the reason for this in my letter of February 26, but now wish to go into the 
matter in further detail. 

You will perhaps remember that of the 84 interruptions during the year 51, or 
approximately 61 per cent, occurred in the months of September, October, November, 
and December. In my letter of February 26 I explained that during this period the 
Chicago system was particularly unfortunate in what we call ‘‘line troubles” or 
broken tubes in the streets. These troubles in every instance were due to causes 
entirely beyond the company’s control. They not only resulted in serious delays and 
difficulties in operating the service, but, as must be apparent, during this period the 
carriers had to be forced through these tubes, and the carriers were therefore subject 
to considerable abuse. The result of this is clearly shown by the fact that out of the 
84 interruptions 30 of them, or approximately 36 per cent, were due to carrier troubles. 
Now, this same type carrier has been used during this period by the systems in Boston, 
Brooklyn, New York, and Philadelphia . The fact that these systems did not have 
similar trouble makes me believe that the cause of Chicago.’s poor record, while due 
apparently to defects in carriers, was due primarily to the abuse which these carriers 
got in going through defective tubes. 

These tubes have now been removed from the Chicago system, as is indicated by our 
record since the first of the year. During this period there has been but one serious 
trouble, i. e., from 10.45 p. m. on March 10 to 6 p. m. on March 11. This trouble was 
on the line between general post office and La Salle Station. It was caused by the 
carelessness of one of our employees, who dispatched an open carrier. This employee 
was immediately discharged. The following carrier wedged on the mail and it was 
necessary to dig up the tube. The carrier happened to be stuck on Jackson Boulevard, 
which is under the control of the park commission. The park commission refused to 
allow our employees to start digging until 7.45 a. m., March 11. This fact accounts for 
the length of delay. 

If there is any other information which 1 can give you which will be of assistance to 
you in connection with this question, I shall be very glad if you will write to me. 

Respectfully, 

American Pneumatic Service Co., 

M. L. Emerson, Manager. 


United States Post Office, 

Office of Superintendent of Mails, 

Mr. Alfred Brooks Fry, Chicago, III., March 5, 1913. 

Consulting Engineer, 

Customhouse Building, New York, N. Y. 

Sir: This office has the honor to acknowledge the receipt of your communication 
of February 27, inclosing letter from the manager of the American Pneumatic Service 
Co., under date of February 26, in regard to the interruption of tube service in the 
Chicago lines, which letter is in reply to one you addressed to him on February 24, 
pointing out that the number of stoppages in the Chicago tube system greatly exceeded 
those of any other city; also that in about 75 per cent of the stoppages the cause is 
given as unknown; and, further, that there were a considerable number of open 
carriers and more than the average number of interruptions in December last. For 
additional information in this matter, you state that you are transmitting a duplicate 
of the report made by the postmaster at New York City on stoppages in the pneu¬ 
matic-tube system in that city during 1912, and that the form which he uses is sub¬ 
stantially the form which is used in Philadelphia, Boston, and St. Louis as well. 

In compliance with your request that consideration be given the statements made 
in the letter referred to, of the manager of the American Pneumatic Service Co., and 
that it be returned to you with such comment as is deemed proper, you are respect¬ 
fully advised that in so far as the practice of this office in reporting the cause of cer¬ 
tain failures as unknown is concerned it is due to suggestion made by Mr. M. L. 
Emerson, operating manager of the Chicago Postal Pneumatic Tube Co. Inasmuch 
as this suggestion did not appear to be unresaonable, it was deemed advisable to 
adopt the practice of reporting the cause as unknown, and, when reports were made 
to the department, to submit the papers which embodied the facts developed in 
course of investigation for the purpose of ascertaining the cause and thereby allow 
the department to be the judge of the merits of each case. 

Relative to the matter of the proportion of stoppages in Chicago being seemingly 
greatly in excess of those in the other cities enumerated, you are respectfully advisecl 
that this office is not familiar with the systems in operation in those cities, but is 



PNEUMATIC-TUBE SYSTEM. 


335 


inclined to believe that this excess in all probability is due to the manner of reporting 
the stoppages, as illustrated in the letter you submit from the manager of the Ameri¬ 
can Pneumatic Service Co. This office believes its methods in this particular are 
founded on an equitable basis, as route 535004 in operation here is composed of three 
branches leading from the main office. Two of these branches supply a number of 
railroad depots and stations. 

For instance, the branch leaving the main office, running to La Salle Station, con¬ 
tinues to Union tube station, and from thence to Canal Station. When the service 
between the main office and La Salle Station is suspended it is likewise suspended 
between La Salle and Union tube stations, and between this latter station and Canal 
Station. Should a suspension occur between Union tube station and Canal Station, 
which is the last link on this line, service would be discontinued on the other two 
links of this line—between the main office and La Salle Station, and between La Salle 
and Union tube stations. In this event the stoppage of service on the first link indi¬ 
cated would be reported as one item. Hence, when the service on one link of the 
line is suspended, and all the other links are shut down on its account, they are re¬ 
ported as separate items. 

In the case of the line from the main post office to Illinois Central, Twentieth Street, 
Armour, and Stock Yards Stations, service may be stopped between the main post 
office and Illinois Central Station, and the mail be transported by wagon, while the 
service will continue in operation between the other stations enumerated on this 
line. In cases of this kind the stoppage is reported as between the main post office 
and the Illinois Central Station only. In like manner, service may be suspended 
between the Illinois Central Station and other stations south along this line, while 
the service between the main post office and Illinois Central Station is in operation. 
In instances of this kind the suspension is reported between each connecting station 
as a separate item. The reason why service continues between these stations is due 
to the fact that the company has an independent power house located at the Armour 
Station, which operates the service between the Illinois Central and Stock Yards Sta¬ 
tions, independently of the power derived from the main office, operating branch 
between main office and Illinois Central Station. 

The underlying idea in reporting each link of the service suspended as a separate 
item is for the purpose of enabling the department to more equitably adjust fines im¬ 
posed on the company corresponding to the measure of their delinquency in the per¬ 
formance of service. 

In cases of suspension of service covering one or more days, each day’s suspension 
is reported for the reason that the company is under contract to supply 24 hours’ ser¬ 
vice each day; and to report a suspension covering more than one day as one item 
would be likely to result in erroneous deductions for the reason that the 4 hours’ sus¬ 
pension to which they are entitled out of the 24 would be included. 

Respectfully, 

D. A. Campbell, Postmaster. 


Boston, Mass., February 26, 1913. 

Alfred Brooks Fry, 

Consulting Engineer, Customhouse Building, New York City. 

My Dear Sir: I thank you for your letter of February 24, and for the report of inter¬ 
ruptions and suspensions of tube service in the various Chicago lines from January 1 
to December 31, 1912, which you sent me therewith for my comment and explanation. 

You state that there are two things about the report which seem to you unusual; 
first, in reference to the interruptions, that in about 75 per cent of the cases the cause 
is given as “unknown”; that there appears to be a considerable number of open 
carriers, and that there seems to be more than an average number of interruptions in 
December; and secondly, that the proportion of stoppages in Chicago seems greatly 
in excess of those in any other city. 

Let me comment on your second statement first. We, of course, keep a very com¬ 
plete record of all interruptions to our service. I have therefore compared your 
tabulation of stoppages with these records, and find that they very closely agree in 
each instance except in Chicago. In that city your list gives 204 stoppages, whereas 
our records show 84. These delays are spread over the year as follows: January, 4; 
February, 2; March, 3; April, 4; May, none; June, 2; July, 12; August, 6; September, 
12; October, 14; November, 11; December, 14. 

The apparent large number of stoppages in Chicago as shown on your list, and the 
differences between our records and those given you by the post office, are explained 
as follows: The Chicago post office has a method different from that used in Boston, 
New York, Philadelphia, and St. Louis for tabulating this data. As a result this data 
can not be compared until it has been adjusted. 



336 


PNEUMATIC-TUBE SYSTEM. 


The Chicago method is as follows, and can best be explained by an example. The 
Chicago general post office furnishes power for the pneumatic tube between general 
post office and Canal Station via La Salle Station and Union Station. If a carrier 
sticks between general post office and La Salle Station, tube service is necessarily 
discontinued as far as Canal Station. In all cities but Chicago such an accident is 
stated as one suspension, which resulted in delays to pneumatic-tube service at cer¬ 
tain mentioned stations. In Chicago this accident is stated as three interruptions— 
one between general post office and La Salle Station, one between La Salle Station 
and Station U, and one between Station U and Canal Station. Again, if this same sus¬ 
pension lasts over parts of two days, say from 11 p. m. on one day to 6 a. m. on the 
following day, this single accident by the Chicago method is called three interruptions 
for each day, or six interruptions in all; whereas by the method used in the other 
cities it would be stated as one accident and interruption. 

In this connection you may be interested to know that the company is required 
to make a formal report to the Chicago post office for all such accidents. In such 
reports we invariably explain that the several separate instances of stoppage stated 
by the post office refer to one interruption only. 

In order to make this point as clear as possible let me quote from the report which 
you sent to me and which I am returning herewith, as you requested. 

On page 1 of the report it states, under date of March 16, that there was an inter¬ 
ruption between general post office and La Salle Station from 4.20 to 4.26 p. m.; on 
page 4 it states that there was an interruption on the same date between La Salle 
Station and Station U from 4.15 to 4.27 p. m.; and on page 8 it states that there was 
an interruption between Station U and Canal Station on the same date from 4.22 to 
4.28 p. m. These three items refer to one interruption only, which, according to 
our records, lasted for 12 minutes and was caused by a carrier sticking in the tube 
for some unknown reason. 

Again, the pneumatic tube between these same points was interrupted from October 
30 until November 3 because of a broken tube, which had to be removed from the line. 
This single accident, as you will note from the post-office records, is described as 
follows: As separate interruptions between general post office and La Salle Station 
on October 31, November 1, November 2, and November 4, and as separate interrup¬ 
tions between La Salle Station and Station U and Station U and Canal Station on 
the same dates. In other words, by the Chicago method of stating the data this 
single accident is stated as 12 interruptions. 

Now let me comment on your first statement: Your first point is that in about 75 
per cent of the stoppages the Chicago post office gives the cause as “unknown.” I 
mentioned above the fact that in the case of all accidents we make a formal report 
to the post office. This report in practically every instance gives the cause of the 
accident. The post office have apparently given you a copy of their own preliminary 
report and have not noted therein the cause of the accident as later stated to them 
by us. Mr. Batcheller has a summary giving in detail all the accidents in the Chicago 
system last year. He will be glad to go over this with you and to explain these dif¬ 
ferent accidents. 

In the matter of open carriers, the Chicago system had an unusual number last 
year. The cause of this was some defective steel which entered into certain carrier 
parts. All our steel is purchased on analysis. This steel, however, was not uniform. 
The Chicago system happened to be the first to get these parts, and was, therefore, 
the sufferer. All these parts were replaced as quickly as possible. 

The Chicago system was also particularly unfortunate during the year in what we 
call line troubles, or broken tubes in the streets. Such troubles are very unusual, and 
are wholly a question of accident. These broken tubes also are often very difficult 
to find, and consequently the trouble may extend over a very considerable period of 
time. These major troubles were as follows: 

On January 10 a new elevated road pier broke a tube. This accident was easily 
discovered and repaired. 

On August 8 the sheathing of the new foundation for the Hub Building, on State 
Street, gave way. This resulted in the street caving in and all public-service struc¬ 
tures being broken. The street was roped off, and continued to slide for several days. 
For this reason it was not possible to repair our tubes until August 14. 

From October 19 to November 31 intermittent troubles of more or less seriousness 
were had with broken tubes on the La Salle line. At times these tubes simply dam¬ 
aged carriers, and at other times they blocked the line. It was found that a very 
serious water-main leak had undermined our tube for a considerable distance. This 
caused several tubes at different points to break. All of these tubes were finally 
found and removed and the line relaid. The water pipe, the water from which was 
escaping into the river, was repaired. This line is now, therefore, in good condition. 


PNEUMATIC-TUBE SYSTEM. 


337 


On November 10, and again on December 4, workmen engaged in demolishing the 
old Northwestern Railway Depot dropped walls or chimneys on our tube line, thereby 
causing breaks and delays in service. 

All the accidents mentioned above are what might well be called extraordinary and 
unusual. 

In reference to your statement that there appears to be a proportionately large 
number of stoppages in December, I find on analysis that of the 14 interruptions, 
most of them are of short duration and are due to carrier troubles. The carriers dur¬ 
ing October and November were subject to continual abuse because of the broken 
joints in the La Salle line, which were later discovered, and which are described 
above. These carrier troubles can undoubtedly be laid to this cause. 

You state that as a matter of comparison between the different systems you have 
taken the stoppages per mile per year. It may interest you to know that we base our 
comparisons on the stoppages per line—or, in other words, per transmitter per year. 

You also state Chicago to have a rather less mileage than Boston. This I presume 
is an error in transcribing. 

I have answered your letter in considerable detail, and I hope that I have given 
you the information which you desire. 

Respectfully, 

American Pneumatic Service Company, 
M. L. Emerson, Manager. 


EXHIBIT O, CHICAGO NO. 3. 

Detailed Report on Power-Generating Apparatus and Equipment; also on 
Vaults, Tunnels, etc., Chicago Postal Pneumatic Tube Co. 

POWER-GENERATING APPARATUS. 

There are three power plants, situated as follows: General Post Office Building, 
basement, Clark and Adams Streets; Canal Postal Station, basement, Washington 
and Canal Streets; Armour Postal Station, basement, Thirty-first Street and Indiana 
Avenue. 

' GENERAL POST OFFICE POWER PLANT. 

Equipment .—Three 75-horsepower Rand Drill Co. duplex steam compressors; one 
75-horsepower Laidlaw-Dunn-Gordon duplex steam compressor; three receiver tanks; 
one ventilating engine; one panel board. 

Cards were taken on all four engines, both steam and air cylinders, and are sub¬ 
mitted herewith. All of the eight compressor and six steam-cylinder heads were 
removed and cylinders calipered to determine amount of wear. (See test sheet 
“A”—engines.)' The two steam-cylinder heads of the Laidlaw compressors were not 
removed, owing to the fact that the entire compressor end of the engine would have 
to be dismantled before heads would be accessible. 

The following repairs are necessary in order to place engines in first-class condi¬ 
tion, viz: 

Hews & Philips 75-horsepower duplex steam engine, cylinders 10 inches by 18 
inches, and Rand Drill Co. duplex air compressor, No. 1, cylinders, 20 inches by 26 
inches, require— 

New crank pins and brasses. 

New guide shoes. 

New cross-head pins and brasses. 

New piston rods. 

New throttle valve. 

New expansion rings. 

Main bearings overhauled. 

Valve gearing lost motion taken up. 

Steam cylinders rebored. 

Compressor cylinders rebored. 

Eccentrics overhauled. 

New compressor valves in exhaust.. 

Compressor valve’s casing rebored. 

Oiling system overhauled. 

Steam-exhaust system overhauled. 

New steam-valve stems all around. 

New dash pots. 

78419—13-22 



338 


PNEUMATIC-TUBE SYSTEM. 


Many of the above-named parts now in nee, with good care, will give service for 
some time to come. 

Hews & Philips engine and Rand Drill Co., compressor No. 2 (No. 2582), cylinders, 

10 inches by 18 inches and 20 inches by 26 inches, respectively, require— 

New crank pins and brasses. 

New guide shoes. 

New cross-head pins and brasses. 

New piston rods. 

New valve gearing and lost motion taken up. 

New throttle valve. 

New expansion rings, steam cylinders. 

Steam cylinders rebored. 

Eccentrics overhauled. 

Compressor cylinder rebored. 

New compressor-expansion rings. 

New valves in compressor exhaust. 

Compressor valve casing rebored. 

Oiling system overhauled. 

Steam-exhaust system overhauled. 

New valve stems all around. 

New dash pots. 

With good care many of the above parts will give service for some time to come. 
Hews & Philips engine, cylinders 10 inches by 18 inches, and Rand Drill Co. air 
compressor No. 3 (No. 2579), cylinders 20 inches by 26 inches, require— 

Low-pressure side-main bearing looked over. 

Low-pressure side-main shaft looked over. 

New crank pins and brasses. 

New guide shoes. 

New cross-head pins and brasses. 

New piston rods. 

New valve gearing. 

New throttle valve. 

New expansion rings. 

Steam cylinder rebored. 

Eccentrics overhauled. 

Compressor cylinder rebored. 

New compressor-expansion rings. 

New valves in exhaust. 

Valve casings rebored. 

Oiling system overhauled. 

New valve stems for compressors. 

New dash pots. 

With good care many of the above-named parts will last for some time. 

Laidlaw Dun Gordon Co. (No. 18302) duplex steam compressor No. 4, cylinders 

11 inches by 18 inches and 24 inches by 24 inches, requires— 

Low-pressure side-main bearing looked over. 

New crank pins and brasses. 

New guide shoes. 

New cross-head, low-pressure side. 

New piston rod, high-pressure side. 

New cylinder, high-pressure side (cracked and patched in two places). 

New throttle valve. 

New expansion rings. 

New valve stems for compressors. 

Eccentrics overhauled. 

Compressor cylinder rebored. 

Oiling system overhauled. 

New dash-pot parts. 

Many of the above-named parts will last for some time with good care. 

STEAM-DRIVEN VENTILATING FAN. 

Sturtevant Co., Hyde Park, Mass., 5-inch by 5-inch cylinder. 48-inch exhaust fan. 
Frame of engine cracked and patched. Repairs required as follows: 

New brasses needed and lost motion taken up on crank at crosshead. 

SWITCHBOARD. 

Three air gauges. 

One steam gauge. All in good condition. 



PNEUMATIC-TUBE SYSTEM. 


339 


Test Sheet A. 

ENGINES. 

Inspection cylinder , piston rods , pistons , piston rings , etc. 

Engine No. 1, Rand Drill Co., duplex steam compressor: 

Piston rod wear when piston is full at crank end, one-eighth inch. 

Piston rod wear when piston is full at head end, seven sixty-fourths inch. 
High-pressure steam cylinder: 

Could not remove head. 

High-pressure compressor cylinder: 

Engine on crank end. 

By caliper fourteen-thousandths of an inch difference between horizontal and 
vertical wear. 

Worn greatest vertically. 

Low-pressure steam cylinder: 

Vertical wear, head end, five-thousandths of an inch greater on head end than 
on crank end. 

Piston rod worn one sixty-fourth of an inch on crank end; five sixty-fourths of an 
inch on head end. 

Low-pressure compressor cylinder: 

Vertical wear seven one-thousandths of an inch greater on head end than crank 
end. 

Horizontal wear three one-thousandths of an inch less on crank end than on head 
end. 

ENGINE NO. 2. 


High-pressure steam cylinder: 

Worn twenty-one one-thousandths of an inch at half stroke. 

Worn four-thousandths of an inch greater vertically on head end than crank end. 

Piston rod: 

Worn seven-thousandths of an inch greater at crank end vertically than hori¬ 
zontally. 

Head end, vertical and horizontal, no wear. 

Worn three-thousandths of an inch greater horizontally than vertically at half 
stroke. 

Full size crank end, 2^ inches; head end, 2\ inches, H. P 

Caliper at crank end, 2f inches. 

Caliper at head end, 2-|-§ inches. 

Caliper three-fourths stroke vertical 0. K. 

Caliper horizontally indicates two-thousandths of an inch wear. 

Low-pressure steam cylinder: 

Position, head end: Cylinder worn seven-thousandths of an inch vertically 
greater than horizontally. 

Low-pressure compressor cylinder: 

Position, half stroke: Cylinder worn six-thousandths of an inch greater vertically 
than horizontally. 

Position, head end: Cylinder worn seven-thousandths of an inch greater hori¬ 
zontally than vertically. 

Position, crank end: Cylinder worn seven-thousandths of an inch greater vertically 

than horizontallv. 

%/ 

ENGINE NO. 3. 

Rand drill compressor, Hews & Philips engine: 

Steam cylinder, 10 inches; C. E. rod, 2^ inches; II. E., 2\ H. P. 

Steam cylinder, 18 inches; C. E. rod, 2| inches; H. E., 2| L. P. 

Air cylinder, 26 inches; C. E. rod, 2^ inches; stroke, 20 inches. 

Cylinder inspection: 

High pressure, steam end. 

Head end cylinder worn vertically twelve one-thousandths of an inch greater 
than horizontally. 

('rank end cylinder worn vertically fourteen one-thousandths of an inch greater 
than horizontally. 

Half stroke worn vertically twelve one-thousandths of an inch greater than 
horizontally. 

Cylinder rod worn one thirty-second of an inch. 


340 


PNEUMATIC-TUBE SYSTEM. 


High-pressure compressor: 

Cylinder worn vertically twenty-one one-thousandtlis of an inch greater than 
horizontally at head end. 

At half stroke worn vertically twelve one-thousandths of an inch greater than 
horizontally. 

Crank end worn vertically twenty one-thousandths of an inch greater than 
horizontally. 

Cylinder badly scored. 

Piston: 

Piston has been cracked and w r elded. 

Rods: 

Worn one sixty-fourth of an inch. 

Rings: 

Working O. K. 

Low pressure, steam end: 

Head end worn seven one-thousandths of an inch greater vertically than hori¬ 
zontally. 

At half stroke worn seven one-thousandths of an inch greater vertically than 
horizontally. 

Crank end worn seven one-thousandths of an inch greater vertically than hori¬ 
zontally. 

Rods: 

Worn one sixty-fourth of an inch. 

Low-pressure compressor: 

Head end cylinder worn four one-thousandths of an inch greater vertically than 
horizontally. 

Half-stroke cylinder worn twenty-one one-thousandths of an inch greater ver¬ 
tically than horizontally. 

Crank end cylinder worn six one-thousandths of an inch greater vertically than 
horizontally. 

Rods: 

Worn one sixty-fourth of an inch. 

* 9 

ENGINE NO. 4. 

Laidlaw Dunn Gordon duplex steam compressor, near of cylinder of compressor. 

High-pressure side: 

Worn horizontally twelve one-thousandths of an inch, head end. 

Worn vertically nine one-thousandths of an inch greater than horizontally at 
crank end. 

Head-end expansion ring is not working. 

Low-pressure side, compressor: 

Worn vertically thirteen one-thousandths of an inch greater on crank end than 
on head end. 

Worn horizontally six one-thousandths of an inch at head end. 

Only two cylinders on this engine examined, owing to difficulty of removing 

heads. 


Armour Station power plant, unit No. 2. 

Laidlaw Dunn Gordon twin compressor; cylinders, 18 by 24 inches and 18 by 24 
inches. 

Order No. 18368. 

Tube company No. 73. Placed in service year 1904. 

Station No. 2. 

Cylinders: 

East cylinder worn eight one-thousandths of an inch greater vertically than hori¬ 
zontally at crank end. 

East cylinder worn seventeen one-thousandths of an inch greater vertically than 
horizontally at head-end stroke. 

East cylinder worn ten one-thousandths of an inch greater vertically than hori¬ 
zontally at half stroke. 

West cylinder crank end worn fourteen one-thousandths of an inch greater verti¬ 
cally than horizontally. 

West cylinder head end worn fourteen one-thousandths of an inch greater verti¬ 
cally than horizontally. 

West cylinder half stroke worn seven one-thousandths of an inch greater verti¬ 
cally than horizontally. 


PNEUMATIC-TUBE SYSTEM. 


341 


Pistons: 

East and west pistons on No. 2 compressor worn vertically twenty-eight one- 
thousandths of an inch. 

Valves and valve motion: 

C ompressor No. 2: All four valve seats are worn, and rocker arms and valves have 
considerable lost motion. 

Crosshead shoes: 

Crosshead shoes worn and should be rebabbitted. 

New crosshead pin required. 

Brasses should be renewed. 

Crank pin: 

New pin needed. 

Piston rods. 

Worn one sixty-fourth inch. 

Frame: 

Requires painting. 

Fly wheel: 

‘ O. K. 

Foundation: 

Concrete and cement in good condition. 

- Base: 

In good condition. 

Main bearings: 

Require overhauling. 

Motor: 

No. 80572, tube No. 276 on No. 2 compressor. General Electric Co., manufac¬ 
turers. Direct current. 

Rated 90 horsepower; revolutions per minute, 470 rated. Form A, class 6. 

TESTS. 

Armature and field ground test. Tests clear of grounds. Tests, revolutions per 
minute, 422. 

Temperature test: 

Tests temperature— 

Armature, 38° C. 

Room. 22° C. 

Field,' 40° C. 

Room, 22° C. 


• 

Watts. 

Horse¬ 

power. 

Volts. 

Horsepower tests, amperes 135, 6^ pounds air. 

31,050 
37,490 

38.81 

230 

Tests, amperes 163, 8J pounds air’. 

46.86 

230 



Rheostat for above motor very poor. 


Rheostat: 

95 horsepower volts, General Electric Co. manufacture. 

Slate cracked and new copper segments needed. 

Temperature test: 

Temperature series field electromagnet on rheostat 63° C., room 22° C. 

Switch: 

One 400 ampere 2-pole single-throw fused switch mounted in asbestos lined 
wooden box on temporary board controls above motor, and is in good condition. 
Commutator: 

Commutator needs truing up; otherwise in good condition. 

Brush holders: 

O. K. 

Armature clearance. 

At pole pieces O. K. 

Brushes: 

Brushes do not fit holders. New ones needed. 

Frame: 

O. K. 














342 


PNEUMATIC-TUBE SYSTEM. 


Foundation: 

O. K. 

Belt: 

Good condition. 

Pulleys: 

9. K'. 

Bearings: 

Need attention. 

Oil rings: 

0. K. 

Armour Station power plant , unit No. 1. 

Laidlaw Dunn Gordon twin compressor cylinders, 18 inches by 24 inches. Order 
No. 18370. 

Placed in service, 1904. 

Cylinder wear: 

East cylinder slightly worn vertically. 

West cylinder crank end worn vertically six one-thousandths of an inch. 

Half stroke worn vertically seven one-thousandths of an inch. 

Piston worn twenty-eight, one-thousandths of an inch. 

Rings: 

New rings needed on pistons. 

Piston rods: 

East piston rod worn one sixty-fourth of an inch. 

West piston rod worn one sixty-fourth of an inch. 

Crank pins: 

Disk crank pins worn must be trued up and rebabbitted. 

Shoes: 

All crosshead shoes need overhauling, new oil grooves cut in, etc. 

New crosshead pins needed. 

Brasses and eccentrics: 

Require overhauling. 

Frame: 

O. K. 

Base: 

O. K. 

Flywheel: 

O. K. 

Foundation: 

Concrete and cement in good condition. 

Main bearings: 

Require overhauling. All valve seats worn, and lost motion in valve motion, 
rocker arms, etc. 

Motor: 

Name-plate data— 

General Electric Co. No. 80751, type C. L., class 6. 

Form A, amperes, 300; volts, 220; speed, 470; horsepower, 90. 

Direct current. 


Tests, horsepower. 

Revolu¬ 
tions per 
minute. 

Watts. 

Horse¬ 

power. 

Air. 

Amperes, 180; volts, 230; air, 9| pounds. 

387.3 

41,400 

51. 75 

Pounds. 

9£ 

9 

Volts, 232 (second test). 

386.1 

37,120 

46.4 





Grounds: 

Armature and field O. K., clear. 
Temperature test: 

Room, 22° C. 

Armature, 46° C. 

1 hour run, amperes, 175; volts, 232; air, 9A 
Field test: 

Room, 22° C. 

Time and conditions same as above. 

Field, 40° C. 
















PNEUMATIC-TUBE SYS I EM. 


343 


Commutator: 

Needs truing up. 

Bearings: 

Fair. 

Armature: 

Clearance poles 0. K. 

Oil rings: 

Good. 

Frame: 

O. K. 

Pulley and belt: 

Good. 

Base: 

O. K. 

Foundation: 

O. K. 

Switch: 

Fair. 

Rheostat: 

Poor. 

Temperature test: 

Rheostat, series electromagnet. 
Room, 22° C. 

Series magnet, 65° C. 


Armour Station , unit No. 3. 

Laidlaw-Dunn-Gordon Co. compressor, No. 18369. Size, 24 by 18 inches. Placed 
in service, year 1904. 

Cylinder wear: 

East cylinder worn seven one-thousandths of an inch horizontally at crank end. 
Worn seven one-thousandths of an inch vertically at head end. 

West cylinder worn seven one-thousandths of an inch vertically at half stroke. 

At crank end worn vertically five one-thousandths of an inch. 

West pistons worn twenty-eight one-thousandths of an inch. 

East pistons worn twenty-one one-thousandths of an inch. 

Piston rods: 

Worn one sixty-fourth of an inch. 

Brasses should be renewed, east cylinder, crank pin. 

Bisk crank pins trued up and rebabbitted. 

Cross-head shoes rebabbitted. 

All valve seats require reboring and rebushing. 

Lost motion taken out of rocker arms and valve motion. 

Frame: 

O. K. 

Flywheel: 

O. K. 

Main bearings: 

Need overhauling. 

Foundation: 

O. K. 

Base: 

O. K. 

Motor: 

Name plate data— 

G. E. manufacture. D. C. No. 152440. 

Shunt class 90, Form B. 

Amperes, 321; volts, 230. 

Speed, 470-540; horsepower, 90; in service year 1908. 

Tests: 

Temperature test, after 11 hours’ run. 

Amperes, 170; volts, 230. 

Air, 9 pounds. 

Room temperature, 22° C. 

Armature temperature, 38J 0 C. 

Field temperature, 37° C. 

Room temperature, 22° C. 


344 


PNEUMATIC-TUBE SYSTEM. 


Ground test: 

O. K. clear. 

Clearance test: 

O. K. 

R. P. M., 422.G. 

Horsepower test: 

Amperes, 170. 

Volts, 230. 

Watts, 39,100. 

Horsepower, 48.88. 

Air, 8£ pounds. 

Commutator: 

Needs truing up. 

Bearings: 

O. K. 

Oil rings: 

0. K. 

Brushes: 

50 per cent worn. 

Frame: 

O. K. 

Rheostat: 

O. K. 

Switch: 

O. K. 

Foundation and base: 

0. K. 

Switchboards: 

2 panel board on No. 3 motor O. K. 

Temporary wooden board on No. 1 and No. 2 motors. 
Temporary switchboard: 

Very poor. 


Canal Station power plant. 

One 75-horsepower direct-connected motor-driven Laidlaw-Dunn-Gordon com¬ 
pressor, tube company’s No. 265, two 20 by 12 inch cylinders. 

Compressor motor: 

Fort Wayne, 75-horsepower, 230-volt, type M. P. L. I. 

Interpole, No. 13253. 

Full load, 266 amperes. 

Average load, 100 amperes. 

One hundred and twenty-five to one hundred and eighty revolutions per minute. 
This unit is in first-class condition,’ except commutator of motor needs truing up. 
Blower: 

One 50-horsepower direct-connected Connersville blower. 

Order No. 3129, tube company’s No. 266. 

Displacement 5| cubic feet per revolution per minute. 

Condition first class. 

Motor for above: 

One 50-horsepower 220-volt Fort Wayne motor, No. 12856, M. P. L. I. 

Interpole, shunt wound. 

Full load, 180 amperes. 

Average load, 110 amperes. 

Condition: Commutator needs truing up, otherwise in first class condition. 
Switchboard: 

Tube company’s No. 267. 

One 3-panel switchboard. Panels 2 feet 4 inches wide, 5 feet 8 inches high, 1£ 
inches thick; made of slate, three sections to panel, and equipped as follows: 

One double pole D. T., 500-ampere, 250-volt knife switch. 

Two 300-ampere, D. P. S. T., 250-volt knife switches. 

Two 500-ampere circuit breakers, 250-volt. 

C. E. Company’s type C, Form P, No. 291405—No. DL 53787. 

Two handwheel field controllers. 

One Bristol recording watt meter No. 23642, chart No. 325, tube company’s No. 236. 
(Requires recalibration.) 


PNEUMATIC-TUBE SYSTEM. 


345 


Two gridiron sectional G. E. rheostats lever control. 

One Thomson astatic ammeter, G. E. make, 0 to 400 capacity. 

One Thomson astatic volt-meter swivel hinged to board. G. E. Co.’s make, 
0 to 350 volts. 

Two Schaeffer & Budenberg compressor gauges: 

Range 0 to 20 pounds, 9-inch face. Brass case No. 3978712. 

One recording pressure meter, No. 10036, Industrial Instrument Co., Foxborg, 
Mass. 

Scale 0 to 20 pounds, 24-hour, 1 12-inch brass face. 

The above power plant was installed about three years ago and is practically new 
and in first-class condition. 

\ 

TESTS—CANAL STATION POWER PLANT. 


Temperature tests: 

Date, February 18, 1913. 

50-horsepower direct-connected Fort Wayne motor to Connorsville blower No. 266. 
Time of test, 15-minute period. 

Temperature of room, 70° F. 

Temperature of armature, 82° F. after 1-hour run. 

Load, 110 amperes, 220 volts, 30 horsepower. 

Field test: 

Normal temperature of room, 70° F. 

Temperature of field, 84° F. after 1-hour run at 150 amperes, 220 volts load on 
motor, or 41.2 horsepower; approximately allowing 800 watts to 1 horsepower. 

Temperature test: 

Date, February 18, 1913. 

75-horsepower direct-current Fort Wayne motor direct connected to Laidlaw 
Dunn Gordon compressor; two 20 by 12 inch compressor cylinders. 

Time, 15 minutes. 

Speed, 126 revolutions per minute. 

Temperature of room, 70° F. 

Temperature of armature, 74° F. after 1-hour run, 4\ pounds pressure. 

Heating effect hardly noticeable, both on armature and fields. 

Load, 100 amperes at 4 pounds pressure; 274 average horsepower. 

Line leakage tests: 

Date, February 23, 1913. 

Time, 10.33 a. m. 

Test made by W. A. R. 

I. C. line and return to general post office, 2.54 miles. 

Compressor No. 4 used in test. 

Direct pressure: 

Condition of test, 10 pounds (20.2-inch Hg.) on line. 

Revolutions per minute, compressor to maintain this pressure, 23. 

Gauge reading, lOf; steam gauge, 150; steam flow T meter, 500. 

Time from shut down to zero on Hg. gauge, 19.50f minutes. 

Drop in pressure as follows: 

Drop, \ pound when engine stopped. 

Drop, 1 pound in 1 minute. 

Drop, 2 pounds in 14 minutes. 

Drop, 3 pounds m 2 minutes. 

Drop, 4 pounds in 34 minutes. 

Drop, 5 pounds in 44 minutes. 

Drop, 6 pounds in 6 minutes. 

Drop, 7 pounds in 7 minutes. 

Drop, 8 pounds in 10 minutes. 

Drop, 9 pounds in 12 minutes. 

Drop, 10 pounds in 19.50f minutes. 

Average drop per minute, 1.9 pounds. 

Date, February 23, 1913. 

Time, 9.30 a. m. 


346 


PNEUMATIC-TUBE SYSTEM. 


Direct pressure: 

Line, general post office to Kinzie Station and return, 3.59 miles. 
Condition of test, 10 pounds (20.2-inch Hg.) on line. 

Revolutions per minute, compressor to maintain this pressure, 22. 
Gauge reading, 10 J; steam gauge, 150; steam flow meter, 700. 
Time from engine shut down to zero on Hg. gauge, 24 minutes. 
Drop pressure as follows: 

Drop, 1 pound when engine stopped. 

Drop, 2 pounds in 2 minutes. 

Drop, 3 pounds in 3 minutes. 

Drop, 4 pounds in 4£ minutes. 

Drop, 5 pounds in 6 minutes. 

Drop, 7 pounds in 10 minutes. 

Drop, 8 pounds in 13 minutes. 

Drop, 9 pounds in 17£ minutes. 

Drop, 10 pounds in 24 minutes. 

Average drop in pressure, 2.4 pounds per minute. 

Electrolysis tests. 


Location. 

Pipe neg¬ 
ative to 
rail volts. 

Ampere 

flow. 

Pipe plus 
to rail 
volts. 

Depth 
to pipe. 

Time. 

Randolph and State . 

4 



Feet. 

3 

P. m. 
2.30 

Do. 

2 



3 

2.45 

Jackson and State... 

3 



8 

4.00 

Congress and State. 

4 



8 

4.55 

Quincy and Dearborn. 

4 



8 

4.55 

Do. 

2 



8 

5.05 

Dearborn and Thirty-ninth. 

4 



4 

3.15 

Do. 

2 



4 

3.20 







Equipment inspection, general post office. 

Terminals: 

Three sluice-gate open receivers, Nos. 227, 239, and 243. 

Three gravity transmitters, Nos. 336, 238, and 242. 

One motor-driven time lock, No. 288. 

Illinois Central transmitter, No. 242, has been reconstructed with brass rings and 
legs; legs with brass bushings. 

Scoop cracked. 

Scoop and table reconstructed. 

Receiver and transmitter on this line worn internally vertically one thirty-second 
inch. 

Northwestern line: 

Receiver table has been cracked and welded. Table pan reconstructed. 
Transmitter in first-class condition. 

La Salle line: 

Receiver table back has been cracked and welded. Table and pan reconstructed. 
Transmitter in first-class condition. 

Canal Station terminals: 

One transmitter, No. 232. 

One revolving-valve open receiver, No. 233. 

One motor-driven time lock, No. 286. 

Receiver apparatus in good condition. 

Receiver table has been cracked and welded. 

Transmitter gates slightly worn; good condition. 

Motor-driven time lock in good condition. 

Carriers. 


In service. 431 

Being repaired. 544 

Total. 975 


Of the 431 carriers in service inspected, 121 were found in good condition, 292 with 
cracked old pattern hinges, and 18 with loose riveted hinges. Three of the latter 
require new bottoms, as rust has formed at joints of same. 


































PNEUMATIC-TUBE SYSTEM. 


347 


All of the above will require new buffers, flanges, hinges, and pins in 30 days’ time. 
All locks were found in good condition. 

Of the 544 carriers in repair shop at Canal Station, 215 are ready for service and 
329 in all stages of repairs. 

Union Station terminals: 

Two revolving-valve closed receivers, Nos. 231 and 235. 

Two gravity transmitters, Nos. 230 and 234. 

One motor time lock, No. 285. 

Canal receiver: 

Receiver and table in good condition. 

Transmitter—Upper half of top section cracked. Crack in scoop. Gates slightly 
worn. 

La Salle transmitter—Gates slightly worn; working parts in good condition. 

La Salle receiver table was cracked, and has been welded. Working parts in 
good condition. 

La Salle Station terminals: 

Two sluice-gate closed receivers, Nos. 229 and 237. 

Two gravity transmitters, Nos. 228 and 236. 

One motor time lock. 

G. P. O. receiver slightly worn in chamber. 

G. P. O. receiver gates slightly worn at clevis pin bottom. 

Piston: 

Piston rings, rods, and cylinders in good condition. 

Slide valve, by-pass, table, and back, and pop valve in good condition. 
Transmitter—Chambers reconstructed with brass ring seats and gate lugs with 
bushings. Gates slightly worn. 

Vertical wear of chamber, one thirty-second inch. 

Union Line, La Salle Station, receiver: 

Chamber, gates, and clevis pin slightly worn. 

Pistons, piston rods, cylinders, slide valve, and table back in good condition. 
Pop valve fair; piping poor. 

Transmitter: 

Reconstructed with brass rings and lugs; lugs bushed. Gates slightly worn. 
Scoop in good condition. 

Motor-driven time lock in good condition. 

Twentieth Street Station terminals: 

One sluice-gate closed, receiver, No. 257. 

One gravity transmitter, No. 256. 

Gland broken at front gate on receiver. New bumpers needed. 

Transmitter in good condition. 

Armour Station terminals: 

Two revolving-valve open receivers, No. 249 and No. 253. In service year 1908. 
Two gravity transmitters, No. 248 and No. 252. Latter in service year 1904. All 
in good condition. 

Stockyards Station terminals: 

One sluice-gate receiver, No. 251. 

One gravity transmitter, No. 250. 

Receiver table, casting cracked. Main body casting, No. 2953, cracked. 

Gate worn, needs refacing. Gate seat worn. 

Vertical wear in chamber one-thirty-second inch. 

Transmitter in good condition. 

Illinois Central terminals: 

Two sluice-gate closed receivers, No. 245 and No. 255. In good condition. 

Two gravity transmitters, No. 244 and No. 254, in good condition. 

One motor-driven time lock, No. 287, in good condition. 

Kinzie Street Station terminals: 

One revolving-valve closed receiver, No. 24, in good operating condition. 

One gravity transmitter, No. 240, in good order. 

New bumpers needed on table. 

Brass bends used on machines and in station, as follows: 

Two 5° brass bends. 

Two 90° brass bends. 

Three 45° brass bends. 

The above should be removed and replaced with cast-iron bends. 


348 


PNEUMATIC-TUBE SYSTEM 


Vault inspection. 

GENERAL POST OFFICE TO ILLINOIS CENTRAL STATION. 


[Date, Feb. 26, 1913.] 


Location. 

Property of— 

Depth. 

Material. 

Size 

cover. 

Drips. 

Condition. 

Indiana Avenue, 105 feet north 
of Thirteenth Street. 

Twelfth and Indiana, south_ 

Tube company 

.do. 

Ft. in. 

5 

Concrete. 

Ft. in. 

2 6 

( 1 2 ) 

2 


6 

Brick. 

2 6 


Twelfth and Indiana (west 
cross walk). 

Twelfth and Michigan. 

.do. 

6 

.do. 

2 6 



.do. 

3 

.do. 

2 6 



Twelfth and Wabash. 

.do. 

7 

.do. 

2 6 

2 


Twelfth and Aliev L. 

.do. 

6 

.do. 

2 6 



Hannon Court and Alley L... 

.do. 

4 6 

.do. 

2 6 

2 


Eldridge Court and Alley L... 


6 


2 6 

( U 


Peck Court and Alley L. 

.do. 

5 6 

.do. 

2 6 


Hubbard and Alley L. 

.do. 

4 

.do. 

2 6 



Harrison, 128 feet south of 
Alley L. 

Harrison and State. 

.do. 





.do. 

5 

Brick. 

2 6 

2 


Harrison and Alley L. 

.do. 

4 

.do.... 

2 6 

( 3 * ) 

2 


Congress and State. 

.do. 

6 

.do. 

2 6 


Jackson and State. 

.do. 

8 3 

.do. 

2 6 

2 


Quincy and Dearborn. 

.do. 

8 3 

.do. 

2 6 



Twelfth, south of Alley L _ 

.do. 

6 6 











Owing to snowfall and ice above vaults were not opened up for inspection. 

STOCK YARDS LINE. 

[Date, Feb. 25, 1913.] 


Indiana and Thirtv-first. 

Tube Co. 

Ft. in. 

6 0 

6 0 

Brick. 

Michigan and Thirtv-first. 

.do. 

.do. 

Alley L and Thirty-first. 

.do. 


Aliev L and Thirtv-seeond.... 

.do. 

3 6 

3 0 

5 0 

7 0 

4 0 

4 6 

4 h 

6 0" 

Brick. 

Aliev L and Thirty-third. 

.do. 

.do. 

Do. .. 

.do. 

Concrete. 

Thirtv-third and State. 

.do. 

Brick. 

Thirty-third and Dearborn.... 

.do. 

.do. 

Thirtv-fifth and Dearborn. 

.do. 

.do. 

Thirtv-sixth and Dearborn.... 

.do. 

... do. 

Thirtv-seventh and Dearborn. 

.do. 

.do. 

Do. 

.do. 


Thirty-eighth and Dearborn... 

.do. 

5 \ 

Brick. 

Thirty-ninth and Dearborn... 

.do. 

4 6 

.do. 

Fortieth and Dearborn. 

.do. 


.do. 

Root and Dearborn. 

.do. 

4 6 

.do. 

Root, under viaduct. 

.do. 

4 0 

Concrete.... 

Wentworth and Root. 

.do. 

3 8 


Fifth Avenue and Root. 

.do. 

3 fi 


Princeton and Root. 

.do. 

3 4 


Pennsylvania Viaduct and 

.do. 

4 fi 

Brick. 

Root. 




Butler and Root. 

.do. 

3 8 

.do. 

Wallace and Root. 

... .do. 

3 8 

Concrete_ 

Union and Root. 

.do. 

3 7 

Brick. 

Emerald Avenue and Root ... 

.do. 

4 8 

.do. 

Aliev east of Halsted and Root. 

.do. 

3 6 

.do. 

Wentworth and Root. 

.do. 

1 6 







Ft. in. 
2 6 
2 6 


2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 


Good. 

Do.* 

Do. 5 * 

Do. 

Do. 

1 inch water.® 

2 inches water. 
Good. 

2 inches water. 
Good. 

Do. 7 
Do. 8 
Do. 

Do. 9 
Do. 

( 3 ) 

3 inches water. 
Goodd 0 

Do.w 

Do.io 

Do. 10 


( 12 ) 


Dodo 

Do. 11 

Do. 

Do. 

Do. 7 


1 Four 90° bends. 

2 One closure. 

3 Two 90° bends. 

i Frozen up: could not get cover off. 

5 One 12-inchstreet box. 

s Two crossover bends. 


7 Two 22.30° bends. 

« Two test pipes: 12-inch street box. 

9 Two closure pieces. 

10 Two slant flange closures. 

17 Four 22.30° bends. 

12 Dutchman; in service 1905. 




























































































































































































PNEUMATIC-TUBE SYSTEM 


349 


Vault inspection —Continued. 

ILLINOIS CENTRAL LINE TO ARMOUR. 
[Date, Feb. 26, 1913.] 


Location. 


Fourteenth Street and Indi¬ 
ana Avenue. 

Opposite 1442 Indiana Avenue 

35 feet north of Fourteenth 
Street. 

Sixteenth Street and Indiana 
Avenue. 

Eighteenth Street and Indi¬ 
ana Avenue. 

Eighteenth Street south of In¬ 
diana Avenue. 

Twentieth Street north of In¬ 
diana Avenue. 

Twenty-first Street and Indi¬ 
ana Avenue. 

Twenty-second Street south 
on Indiana Avenue. 

Twenty-third Street south on 
Indiana Avenue. 

Twenty-fourth Street south 
on Indiana Avenue. 

Twenty-fifth Street north on 
Indiana Avenue. 

Twenty-sixth Street south on 
Indiana Avenue. 

Twenty-seventh Street south 
on Indiana Avenue. 

Twenty-ninth Street south on 
Indiana Avenue. 

Thirtieth Street and Indiana 
Avenue. 


Property of— 

Depth. 

Material. 

Size 

cover. 

Drips. 


Ft. in. 


Ft. in. 


Tube company 

5 3 

Brick. 

2 6 

2 

.do. 

3 8 

.do_ 

2 6 

2 

.do. 

5 7 

.do. 

2 6 


.do. 

6 

.do. 

2 6 


.do. 

4 4 

.do. 

2 6 


.do. 

4 2 

.do. 

2 6 

2 

.do. 

8 7 

.do. 

2 6 

r 2 

.do. 

6 

.do. 

2 6 

2 

.do. 

6 2 

.do. 

2 6 


.do. 

8 

.do. 

2 6 

2 

.do. 

4 

.do. 

2 6 


.do. 

8 

.do. 

2 6 

2 

.do. 

7 4 

.do. 

2 6 

2 

.do. 

3 5 

.do. 

2 6 


.do. 

5 8 

.do. 

2 6 

2 

.do. 

3 2 

.do. 

2 6 






% 


Condition. 


Owing to heavy snowfall and ice, above vaults were not opened 
up for inspection. 


KINZIE LINE. 


Location. 

Property of— 

Depth. 

Quincy and Dearborn. 

Tube company 
.do. 

Feet. 

10 

11 

11 

10 

8 

8 

4 

10 

4 

5| 

7 

6 

12 

Monroe and Dearborn. 

Wabash and Monroe. 

.do. 

Monroe and Michigan. 

.do. 

W ashington and Michigan.... 

.do. 

Randolph & Michigan. 

.do. 

State and Randolph. 

City. 

Dearborn near Lake. 

Tube company 
City. 

Couch Place, Garrick Theater. 
Clark near Lake. 

Tube company 
.do.. 

La Salle and Lake. 

Fifth Avenue and Haddock_ 

.do. 

Kinzie Station. 

.do. 




Material. 

Size 

cover. 

Drips. 

Condition. 


Ft. in. 



Brick. 

2 6 


Good. 

.do. 

2 6 

2 

2 inches water. 

.do. 

2 6 

2 

Do. 

.do. 

2 6 

2 

Good. 

Concrete. 

2 6 

i 2 

New. 

.do. 

2 

( 2 ) 

Do. 

Brick. 

2 6 


Good. 

.do. 

2 6 

1 

Do. 

.do. 

2 

( 3 ) 

Do. 

.do. 

2 6 

( 4 ) 

2 inches water. 

Concrete. 

2 6 

( 5 ) 

New. 

.do. 

2 

( 6 ) 

Do. 

1 drip. 



Good. 


Total vaults. 

Special street 12-inch drip boxes.. 

Total number drips.. 

i And 2 offset bends. 

1 Two 90° bends. 

* Two closures and 2 short bends. 


* One closure. 

5 One pair 22° bends. 

6 One pair 22.30° bends. 


12 

1 

8 






















































































































































350 


PNEUMATIC-TUBE SYSTEM. 


Vault inspection —Continued. 

NORTHWESTERN LINE. 
[Date, Feb. 24, 1913.] 


Location. 

Property of— 

Depth. 

Material. 

Size 

cover. 

Drips. 

Condition. 

Washington and Canal. 

Canal and Monroe 

Tube company 
. do. 

Feet. 

10 

5 

Concrete. 

.do. 

Feet. 

2 

2 

0) 

Good. 

Do. 






1 Two 45° offset bends. 

Total vaults northwestern line, 2. 


LA SALLE LINE. 
[Date, Feb. 25,1913.] 


Clark and Harrison. 

Tube company 
.do. 

Feet. 

9 

Brick. 

Ft. in. 

2 6 

i 2 

18 inches water. 

Harrison and Federal. 

8 

Cement lined.. 

2 6 

4 inches water. 

Van Buren and Federal. 

.do. 


( 2 ) 

( 2 ) 

( 3 ) 1 

Rock Island Viaduct. 

.do. 





Jackson Street and Federal.... 

.do. 












Total number of vaults. 2 

Total special 12-inch drip boxes. 2 

Total drips. 5 


1 Frozen and clogged. 3 One 12-inch box with 2 drips. 

2 Two 12-inch drips frozen and clogged. 

STATION U LINE. 

[Date, Feb. 25,1913.] 


Van Buren and Canal. 

Tube company 
.do. 

Ft. in. 
2 6 

Brick. 

Ft. in. 
2 6 

2 

2 inches water. 

South Van Buren and Canal... 


0) 

( 2 ) 

2 6 


Harrison and Canal. 

.do. 


5§feet concrete 
Brick. 


Good. 

Under viaduct, near Canal 

.do. 

4 


Do. 

Street. 

Edison R. R. tracks. 

.do. 

1 12 

Cover. 

3 2 

Harrison and river. 

.do. 

6 

Concrete. 


Do. 

Fifth Avenue and Harrison.... 

.do. 



( 4 ) 

( 5 ) 

( 6 ) 

Opposite 516 Sherman Street.. 

.do. 

5 3 

Brick. 


Do. 

La Salle and Harrison. 

.do. 











Total drip boxes. 

Total test pipes in vaults. 

Total test pipes in 12-inch boxes. 

Total vaults Station U line. 

1 One 12-inch cover, 2 test pipes. * One 12-inch box and 2 test pipes. 

2 Width extra large. 3 Four 90° bends. 

3 Frozen and clogged. 6 One 12-inch drip vault. 


4 

4 

3 

5 


TUNNELS. 

Fifth Avenue tunnel, under Chicago River, owned by tube company, in good con¬ 
dition, except lighting equipment, which is out of order. 

This tunnel is of concrete construction, 5-foot bore, 625 feet long, with two vertical 
shafts. North side of river shaft is 54 feet deep. South side shaft is 65 feet deep. 
Two 2 foot 6 inch cast-iron covers are over shafts. 

Harrison Street tunnel, under Chicago River, owned by city of Chicago. 

Two brick laterals built and owned by tube company. Laterals have three 2 foot 
6 inch manhole covers and are in good condition. 

Equipment: 

One motor in fair condition. Motor is property of telephone company, but is 
claimed by tube company. 

One pump, in poor condition, requires overhauling. 

The piping in Harrison Street tunnel is in good condition. Tunnel is in poor condi¬ 
tion and filled with water most of the time. 

























































































TEST OF CHICAGO PNEUMATIC TUBE CO.’S ENGINE 
NO. 1, NORTHWESTERN LINE. 


PNEUMATIC-TUBE SYSTEM. 


351 



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352 


PNEUMATIC-TUBE SYSTEM. 


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TEST OF CHICAGO PNEUMATIC TUBE CO.’S ENGINE 
NO. 2, LA SALLE LINE. 


PNEUMATIC-TUBE SYSTEM. 


353 


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TEST OF CHICAGO PNEUMATIC TUBE r CO.’S ENGINE 
NO. 2, LA SALLE LINE. 


354 


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PNEUMATIC-TUBE SYSTEM. 


355 


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TEST OP CHICAGO PNEUMATIC TUBE CO.'S ENGiNE 
NO. 3, LA SALLE LINE. 


356 


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ILLINOIS CENTRAL LINE. 


PNEUMATIC-TUBE SYSTEM. 


357 


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TEST OF CHICAGO PNEUMATIC TUBE CO.’S ENGINE 
NO. 4, ILLINOIS CENTRAL LINE. 


.358 


PNEUMATIC-TUBE SYSTEM. 


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TEST OF CHICAGO PNEUMATIC TUBE CO.^S POWER 
PLANT AT ARMOUR STATION, CHICAGO POST OFFICE, 
COMPRESSOR NO. 1, ILLINOIS CENTRAL LINE. 


PNEUMATIC-TUBE SYSTEM. 


359 


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TEST OF CHICAGO PNEUMATIC TUBE CO.’S POWER 
PLANT AT ARMOUR STATION, CHICAGO POST OFFICE, 
COMPRESSOR NO. 1, ILLINOIS CENTRAL LINE. 


360 


PNEUMATIC-TUBE SYSTEM. 


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TEST OF CHICAGO PNEUMATIC TUBE CO.’S POWER 
PLANT AT ARMOUR STATION, CHICAGO POST OFFICE, 
COMPRESSOR NO. 3, STOCK YARDS LINE. 




PNEUMATIC-TUBE SYSTEM. 


361 


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362 


PNEUMATIC-TUBE SYSTEM. 


EXHIBIT P. 

Data Sheet Concerning Certain Pneumatic Postal Tubes and Bends Exca¬ 
vated and Examined in Chicago, March 5 and March 11, 1913. 

TUBE AND BEND TAKEN OUT IN SHERMAN STREET, NEAR LA SALLE DEPOT. 

12-foot tube. Date installed, 1903-4. 


* 

Original 

size. 

Present 

size. 

Wear. 

Bell end. 

Spigot end. 

Inches. 

H 

8 C 

Inches. 

8-H 

W 

Inches. 

A 

■3JT 


22.30° bend. No. 3944, No. 11. Date of manufacture, 1906; date of installation, 
1907. 



Original 

size. 

Present 

size. 

Wear. 

Right end. 

Inches.' 
8* 
84 
84 

Inches. 

S3 3 

842 

S3 5 

Inches. 

1 0 
•5T 

6T 

Center. 

Left end. 



DATA REGARDING TUBES AND BENDS EXCAVATED MARCH 11, 1913, AT JACKSON BOULE¬ 
VARD AND FEDERAL STREET. 

Illinois Central and La Salle lines. 


Depth of tubes, 12 feet. 

Condition of soil, sandy. 

Condition of tubes, good; several surface rust spots; nothing very deep. 
Date of installation of lines: Date on bend, 1906. No. 3944, No. 16. 
Measurement: 



Original 

size. 

Present 

size. 

Wear. 

Right side. 

Inches. 

84 

84 

Inches. 

S3 6 
°-6T 
S3 5 

Inches. 

A 

UT 

Left side. 



22.30° bend. No. 3944, No. 40. Date, 1906. 



Original 

size. 

Present 

size. 

Wear. 

Right side. 

Inches. 

84 

84 

Inches. 

S3 a 

S3 6 

Inches. 

4 

Left side. 

•5T 

4 


"ST 




















































PNEUMATIC-TUBE SYSTEM. 


363 


EXHIBIT Q, CHICAGO NO. 4. 

r Chicago, III., February 28, 1918 . 

Commander Alfred B. Fry, Consulting Engineer, 

727 United States Customhouse Building, New York City. 

Sir: Pursuant to your letter of instructions of the 7th instant, I have the honor 
to submit the following report on the physical condition of all power plants, pneu¬ 
matic-tube lines, and equipment now furnishing pneumatic-tube service to the post- 
office department in this city, all of which is the property of the Chicago Postal Pneu¬ 
matic Tube Co., Chicago, Ill. 

TUBE LINES—DATE OF INSTALLATION. 

There are now in service 19.2034 miles of single SJ-inch cast-iron tubing in the 
streets of this city which was laid during the past nine years, as follows: 

Between the temporary post office (Michigan Avenue and Madison Street) and 
general post office and Illinois Central tube station, September 14, 1904. 

Between the general post office and La Salle Street tube station, September 23,1904. 

Between the Illinois Central tube station, Twenty-second Street (now Twentieth 
Street station) and Armour Station, October 5, 1904. 

Between Armour and Stock Yards station, November 28, 1904. 

Between La Salle and station L T tube station, December 12, 1904. 

Between temporary post office (Michigan Avenue and Madison Street) and Kinzie 
Street tube station, December 20, 1904. 

Between Kinzie Street and Wells Street tube station and temporary post office, 
October 9, 1905. 

Between station U tube station (Union Depot) and Canal Station, July 12, 1911. 

Double tubing, 9.58 miles. 

POWER PLANTS. 

« 

There are three power plants which furnish compressed air for this system, and 
which are located as follows: Main post-office building; Armour Station, Thirty-first 
and Indiana Avenue; and Northwest Station Building. 

CONDITION. 

The power plants at main post-office building and Armour Station require con¬ 
siderable repairs in order to place same in first-class operating condition. (See engine 
inspection and test sheets attached.) As these plants have been giving service 20 
hours per day for eight and a half years they should be given a good general over¬ 
hauling, or entire new units installed of more efficient design. The power plant at 
Northwest Station is in first-class operating condition, only a few minor repairs being 
required. 

LINES. 

All tests made indicate considerable air leakage on all lines. The amount of same 
probably could be greatly reduced by placing all receivers and transmitter apparatus 
m first-class condition. (See “Line leakage tests.”) 

EQUIPMENT. 

Receivers and transmitters — All transmitters and receivers were carefully examined 
and found to be in good condition (see sheet “Examination equipment”), few repairs 
being required to place same in good operating, condition. 

Carriers .—All carriers in service were individually examined, and practically all 
of same should be placed in the shop for overhauling. (See “Carrier inspection 
sheet.”) 

Tunnels .—The 5-foot bore 625-foot tunnel under river to north side is in first-class 
condition. (See sheet on “Tunnels.”) 

Electrolysis on lines .—Eight tests were made along different portions of lines for 
electrolysis. (See “Electrolysis test sheet.”) All tests gave, negative readings 
from 4 to 1 volt difference in potential between tube line and rails. In no case was 
a positive pipe reading obtained. Owing to lack of time no excavations were made 
to determine ampere flow. However, it is my opinion that were an electrolysis 
survey made of all pipe routes and the tubes uncovered in various places along the 
lines, undoubtedly the pitting and corrosion of pipes due to electrolysis would be 
located at different points, particularly near the street car power plants. As the 
leaded joints of the tubing do not carry current as readily as the threaded joints of 


364 


PNEUMATIC-TUBE SYSTEM. 


water and gas piping, the tube lines would be protected somewhat at the expense of the 
gas and water mains throughout the city, and inasmuch as a great many of the pipes 
laid in the downtown section of the city are 6 feet or more below the car rails, I do 
not anticipate any serious trouble from this source. Also the subject of electrolysis 
has been taken up by the city council in this city, and if the ordinance recently 
passed by the council is enforced, no future thought need be given the subject, as 
adequate protection will then be provided all piping laid in the city streets. 

Physical condition of cast iron in service .—A section of pipe which had been in service 
under the ground at Harrison Street and Fifth Avenue for the past eight years has 
just been removed and broken in a number of pieces, the iron appearing to be in 
first-class condition, the surface of one section being pitted and corroded, but not to 
any great extent. No evidence of crystallization or great internal wear could be 
found. 

Bends .—All brass bends have been removed from lines and replaced with cast-iron 
bends, except at Kinzie Station, and it is my opinion that were these brass bends 
uncovered they would undoubtedly be found in poor condition. As to the internal 
Mear on the cast-iron bends in service, it will be necessary to remove a section from a 
going line in order to obtain any accurate information on this subject. 

GENERAL. 

With the exception of the General Post Office and Armour Station power plants, 
the entire pneumatic-tube system, in my opinion, is in a fair operating condition, the 
physical condition of the lines good, except as to possible leakage at joints. The lat¬ 
ter could be exactly determined by making blank flange tests on all lines. All vaults 
were found in fair condition (see “Vault inspection”), except as to drainage. 


DISPATCHING AND RECEIVING APPARATUS. 


The dispatching and receiving apparatus is in good condition considering its age, 
though more efficient and positive types of machines, such as the Batcheller, have 
been invented since the installation of the types in service. Most of the trouble 
experienced at the present time has been due to disintegration of carriers, which 
trouble could be eliminated by careful attention being given to carrier repairs. 

INVENTORY. 


Inventory and detail of inspection and tests will be found on attached sheets. 
Respectfully, 


Wm. A. Richardson, 

Assistant Chief Engineer. 


EXHIBIT S, B. P. T. CO. NO. 1. 

BOSTON PNEUMATIC TRANSIT CO. 

List of equipment, Feb. 5, 1913. 

Note.— Where exact date of purchase or installation of mechanism or equipment is unknown, approxi¬ 
mate date is stated as nearly as possible. Where cost was not ascertainable, column is left blank. 


SHOP EQUIPMENT. 

1 motor drill press: 

Drill. 

Motor. 

1 motor grinder. 

1 motor blower. 

1 manhole pump. 

Soldering apparatus. 

Miscellaneous tools, carriers’ supplies.. 

Machine parts, etc. 


Year 

installed. 


Cost. Condition. 




1908 
1908 
1908 
. 1908 
1910 
1908 

1903-1912 

190S-1912 


$45.00 
50.00 
40.00 
15.00 
5.00 
25.00 
250. 00 
300.00 


Fair. 

Do. 

Good. 

Do. 

Poor. 

Good. 

Fair. 

Good. 


STREET EQUIPMENT. 

2 force pumps. 

Set of 500-foot rods, drills, 3 picks, 6 shovels, etc., for street work 

Manhole covers, spare bends and closures, etc. (spare). 

Emergency Dutchman (spare). 


1908 

1908-1912 

1910-1912 

1910-1912 


10.00 
75.00 
300.00 
120.00 


Poor. 

Fair. 

New. 

Do. 
























-M 



*nr. non ms ptrcns co., Washington, 















































































PNEUMATIC-TUBE SYSTEM. 


365 


t 


/ 

boston pneumatic transit co.—continued. 
List of equipment, Feb. 5, 1913 —Continued. 


EQUIPMENT. 

General post office: 

Terminals— 

1 sluice gate open receiver, No. 154. 

1 revolving valve open receiver, No. 155. 

2 gravity transmitters, Nos. 153 and 156. 

1 motor time lock, No. 291. 

Power plants 

1 75-horsepower Rand drill duplex steam compressor, No. 177... 

2 60-horsepower Rand drill duplex steam compressors, Nos. 
178, 179. 

1 air receiver, No. 180... 

1 panel board (steam and air gauges). 

North Station: 

Terminals— 

1 sluice gate closed receiver, No. 151. r . 

1 gravity transmitter, No. 152... 

South Station: 

Terminals— 

2 revolving valve closed receivers, Nos. 157, 159. 

2 gravity transmitters, Nos. 158, 160. 

1 motor time lock. v . 

Essex Station: 

Terminals— 

2 revolving Valve open receivers, Nos. 163, 165 (10-inch)... 

1 revolving valve closed receiver, No. 161. 

2 revolving valve 10-inch transmitters, Nos. 164, 166. 

1 cradle transmitter, No. 162 (8). 

Power plant— 

2 Rand drill belt-driven duplex air compressors, Nos. 184,186... 

1 Connersville belt-driven blower, No. 188. 

3 General Electric Co. 50-horsepower motors Nos. 183, 185, 187.. 

2 combination remote control panel boards, Nos. 181, 182. 

1 Standard panel board. 

1 air receiver No. 199. 

Recording instruments, gauges, belting. 

Back Bay Station: 

Terminals— 

1 revolving valve closed receiver No. 167. 

1 revolving valve transmitter No. 168. 

Station A: 

Terminals- 

1 revolving valve closed receiver No. 169. 

1 revolving valve transmitter No. 170. 

Roxbury Station: 

Terminals— 

1 revolving valve open receiver No. 171.,. 

1 revolving valve closed receiver No. 173. 

2 revolving valve transmitters Nos. 172, 174. 

Power plant— 

2 Rand Drill Co. belt-driven duplex compressors Nos. 190, 192 
($1,706.25 each.) 

2 General Electric Co. 50-horsepower motors Nos. 189, 191 
($1,040 each). 

1 air receiver No. 198. 

2 panel boards.'.. 

1 motor-driven time lock. 

1 power control apparatus. 

Belts. 

Uphams Corner Station: 

Terminals— 

1 revolving-valve open receiver, No. 176. 

1 revolving-valve transmitter, No. 175. 

Power plant— 

1 Rand Drill Co. belt-driven duplex compressor, No. 196.. 

1 Connersville belt-driven blower, No. 194. 

2 General Electric Co. 50-horsepower motors, Nos. 193, 195- 

1 panel board. 

1 air receiver, No. 197. 


Year 

installed. 


1906 

1903 

1908 

1912 

1903 

1897 

1897 

1912 


1904 

1904 


1903 

1908 

1912 


1901 

1903 

1901 

1897 

1901 

1906 

1908 

1908-1910 

1908 

1901 

1901 


1903 

1903 


1903 

1901 


1901 

1906 

1901 

1901 

1903 

1901 

1903 

1910 

1910 

1901 


1901 

1901 

1901 

1902 
1901 
1901 
1901 


Cost. 


$700.00 
800.00 


60.00 

4,800.00 
7,800.00 

200.00 


60.00 


3,412.50 
1,000.00 
1,836.00 
1,178.00 
189.00 
200.00 
270.00 


3,412.50 

2,080.00 

200.00 
150.00 
400.00 
300.00 
200. 00 


1,706.25 ] 
1 , 200.00 
2,080.00 
75.00 
200.00 ; 


Condition. 


Good. 

Do. 

Do. 

Excellent. 

Do. 

Good. 

Excellent. 

Good. 


Fair. 

Good. 


Do. 

Do. 

Excellent. 


Good. 

Do. 

Do. 

Fair. 

Excellent. 

Do. 

Do. 

Do. 

Do. 

Do. 

Fair. 


Good. 

Do. 


Fair. 

Do. 


Good. 

Do. 

Do. 

Fair. 

Do. 

Excellent. 

Fair. 

Good. 

Poor. 

Fair. 


Good. 

Do. 

Excellent. 

Good. 

Do. 

Fair. 

Do. 


Note.— Necessary air piping, auxiliary piping, wiring, tools, etc., go with each equipment. 
















































































366 




PNEUMATIC-TUBE SYSTEM. 


boston pneumatic transit co.—continued. 
Supplementary list of Feb. 17, 1913. 


Tubes, etc. 

Year 

installed. 

Cost. 

Condition. 

Length of S-inch tubing in use, 4.16 miles, at $1.65 per foot: 

1 .75 miles . 

1897 \ 

$36,241.92 

Good. 

2.41 miles _ .. 

1903 / 

Length nf 10-jueh tubing in use 9.8634 miles, at SI .65 per foot. 

1901 

85,929.94 
8,160. 00 

Do. 

Street vaults 24 at approximately $340 each. 

1907-1912 

Do. 

Sets of bends, approximately 95 pairs; i. e., 190 sets: 

QO (45 nairsl 8-ineh. at $82 . .. . . 

19081 

7,380.00 
12,500.00 

Do. 

100 f50 nairsl 10-ineb at $125._. 

19021 

Do. 

Necessary drips closures ( 8-inch) . .. 

1897-1903 

|l, 850. 00 

Do. 

Dutchmen etc 74 (estimated 1 at $25 (10-incb) . 

1901 

Number of carriers 8-incb line 300 r>er set total 600. at, $15.. 

1912 

9,000.00 
2,400.00 

Do. 

Number of carriers 10-incb line 80 ner set total 160. at, $15.. 

1912 

Fair. 





i Average. 


EXHIBIT T, B. P. T. CO. NO. 2. 

Statement Showing Irregularities in Connection with Pneumatic-Tube 
Service at Boston, Mass. (Route 504003), Reported by the Postmaster at 
Boston, Mass., to the Honorable Second Assistant Postmaster General, 
Washington, for the Calendar Year 1912. 

February 10, 1912 .—Service between Essex Street Station, Station A, and Roxbury 
Station was out of commission from about 8.15 a. m. Saturday, February 10, until 
about 7 a. m. February 13. Wagon service was supplied by the contractor for pneu¬ 
matic-tube service during the interruption. At 9.30 p. m., February 10, 5 “carriers” 
containing 20 packages of letters postmarked at Roxbury Station and points beyond, 
February 10, 6.30 to 9 a. m., soaked with water, were taken from the inward tube from 
Roxbury to Essex Street Station and delivered at Essex Street Station, where the mail 
was dried out and from where it was afterwards forwarded to its destination. Con¬ 
siderable mail was delayed as a result of this interruption of tube service; about 75 
packages of letters failed of regular dispatch from Boston on the night of February 12, 
as did also a considerable amount of mail on the morning of February 13. Contractor 
reports: “This interruption was caused by tidewater in some way entering one of the 
tubes in the vicinity of Dover Street and Harrison Avenue. How this leak occurred 
or what it is we have not been able to find out, owing to the frozen condition of the 
ground. It has not, however, caused us trouble since that time. This water on enter¬ 
ing the tube was carried by the pneumatic-tube carriers to that point on Harrison 
Avenue where the tubes cross the tracks of the New York, New Haven & Hartford 
Railroad. There, because of the very cold weather, this water was frozen, and the 
pneumatic-tube carriers therefore blocked. This trouble was overcome as quickly as 
possible, and service resumed. In the meantime, wagon service was provided in 
accordance with the terms of our contract and on the schedule as provided by your 
office. The interruption was the first of its kind which has ever occurred in Boston. 
The primary cause of it, i. e., water entering the tubes, has not been discovered, but 
as we stated above, is not now bothering us. We regret the delays which occurred, 
but trust that you will agree that the condition was one entirely beyond our control.” 

May 22, 1912 .—Service between general post office and North Postal Station was 
out of commission between 2.15 and 2.35 p. m., and a quantity of mail was delayed in 
dispatch from Boston as a result. The contractor states that the suspension of tube 
service was due to some trouble with the receiving machinery at North Postal Station 
and that the difficulty was corrected as speedily as possible. 

June 10, 1912 .—Service between general post office and North Postal Station was 
out of commission between 8.50 a, m. and 10.30 p. m., and considerable mail failed of 
regular dispatch as a result and was more or less delayed. At 10.30 a. m. that date 20 
packages of letters that evidently had been dispatched from South Station tube room 
to the North Postal Station early in the morning—as they bore facing slips postmarked 
at points south and west of Boston and in the near vicinity thereto—were delivered 
at general post office by the tube company’s representative with report that they had 
been taken from the tube line. About 10 p. m. 13 packages of letters that evidently 




























PNEUMATIC-TUBE SYSTEM. 


367 


had been dispatched from South Station tube room to the North Postal Station early 
in the day—being covered by facing slips postmarked at near-by points early in the 
morning—were delivered at general post office by the tube company with report that 
they were in a carrier that had been taken from the tube on Beacon Hill. During the 
interruption of tube service mails were carried between general post office and North 
Postal Station in the wagons of Whipple & Co., contractors for screen-wagon service, 
route 404001; service being performed by them on the regular trips between the two 
points and on a number of extra trips between said points; the service being in agree¬ 
ment between the Boston Pneumatic Transit Co. and Whipple & Co. The Boston 
Pneumatic Transit Co. advises that the trouble was caused by carelessness on the part 
of one of its employees, who was immediately discharged. The interruption of service 
was caused by a carrier filled with mail having apparently been dispatched by the 
tube operator at general post office unlocked, causing it to open in transit, thus per¬ 
mitting the mail to escape into the tube. A considerable quantity of mail was badly 
damaged, and same was forwarded to destination or returned to sender with explana¬ 
tion, where either action was possible, but some was damaged so badly as to necessitate 
treating it as “dead.” 

September 10, 1912 .—Service from Essex Street Station via Station A to Roxbury 
Station was out of order between about 12.25 and 12.55. p. m., and more or less mail 
was delayed as a result. Contractor reports, “This delay of 20 minutes was caused 
by. an accident to our compressing machinery. Temporary repairs were made as 
quickly as possible and service continued until final repairs could be made after the 
shutting-down time at night.” 

November 20, 1912 .—Service from the general post office to the South Terminal 
(one direction) was out of commission from about 3.55 to 4.13 a. m., and 350 packages 
of letters were delayed in dispatch varying from 2 hours and 15 minutes to 6 hours, 
according to destination, as a result. Contractor reports as follows: “Our records 
show that we had trouble with our transmitting machinery at the general post office 
from 4 to 4.12 a. m. on November 20, and that during this period some 20 carriers of 
mail were delayed. The trouble was remedied as quickly as possible and service 
esumed.” 

Statement Showing Interruptions in Pneumatic-Tube Service at Boston, 

Mass., for the Calendar Year 1912, Not Resulting in Delay to Mails. 

May 13, 1912 .—Tubes at Station A reported blocked from 10.55 to 11.15 a. m. Con¬ 
tractors report: “During the interval in question it was necessary to change over in 
Essex Street postal station from the regular power unit to the reserve unit because 
of the breaking of a belt. The accident was one which could not have been foreseen.” 

May 25, 1912 .—Service between general post office and South Station tube room 
and latter point and Essex Street station was out of commission from 4.13 to 4.25 p. m. 
Contractors report: “This delay was caused by some small trouble with our operating 
machinery at the South Station.” 

August 21, 1912 .—Service from the South Terminal Station to the general post office 
was out of commission from 11.25 a. m. to 11.58 a. m. Contractors report: “This 
delay was caused by a portion of the machinery breaking at the South Terminal Sta¬ 
tion and the interval of interruption was used in replacing this broken part. During 
this interruption wagon service was performed by Whipple & Co. in accordance with 
our contract with them.” 


EXHIBIT U, B. P. T. CO., NO. 3. 

Boston, Mass., February 28, 1913. 

Mr. Alfred Brooks Fry, 

Consulting Engineer, 121 Customhouse, New York, N. Y. 

Sir: Referring to your letters dated January 30 and February 7, and pursuant to the 
request therein contained, I beg to submit the following report on the present physical 
condition of the pneumatic-tube system now in service in Boston, together with a list 
of equipment, the date of purchase or installation, and the cost, as far as could be 
ascertained. 

I have examined all exposed portions of tubes in street vaults and manholes, with 
particular reference to any deterioration by corrosion, oxidation, or electrolysis. I 
have also examined approximately 300 feet of 10-inch double line tube laid in 1901, 
which was exposed on Boylston Street, incident to excavation for a subway. The 
exterior of all tubes examined was found to be in excellent condition. In no case had 
the surface been affected to any appreciable degree, and generally the coating of 



368 


PNEUMATIC-TUBE SYSTEM. 


asplialtum or other covering was in good condition. Some of the tubes examined were 
laid in streets where street car lines are located, but in no case was any electrolysis 
apparent. On Boylston Street, where the subway was being constructed, sections 
were removed in connection with the work. Sections of the pipe were cut out and a 
careful measurement showed that the tubes were not wasted on the exterior and that 
the wear on the interior was not appreciable. 

On February 20 excavation was made on Derne Street, near manhole at corner of 
Derne and Temple Streets, and on the following day a length of tube 12 feet 2 inches 
long, connecting with 90° bend was removed from trench and replaced by a new tube. 
The tube was marked for identification and taken to the company’s shops, where it 
was measured. The tube was laid in 1897. The measurements were as follows: 
Average vertical diameter of the two ends, 8.146; average horizontal diameter, 8.149; 
showing a wear of eleven one-thousandths on vertical diameter, and fourteen one- 
thousandths on horizontal diameter from the original standard. Average thickness of 
the pipe, nine-sixteenths inch. 

The exterior surfaces of the tube removed and those exposed by the excavation 
were found to be in excellent condition, as were the closure pieces and bends adjoining. 

The internal surfaces of all tubes are well lubricated so that there is no deteriora¬ 
tion from corrosion, and the fiber packing on carriers reduces the wear to a minimum, 
as indicated by the measurements. 

From what has been examined, in my opinion a conservative estimate of the length 
of life of the tubes would be 50 years on straight runs and half that time on bends, 
barring breaking of tubes and bends by settlements on account of excavations for 
other street service pipes, etc. 

The power-generating apparatus at the central post office was installed as follows: 

Two Rand Duplex steam compressors, installed in 1897, and put in operation 
December 20 of that year. These units were used alternately 20 hours daily until 
June 30, 1901, when they were shut down and remained so until November 1, 1902, 
when they were again put in service, and have been operated alternately with a 
third unit, which was installed in 1903. 

In 1903 a larger unit of the same make was installed to operate the South Station 
line, and the three units have been used alternately on the two North and South 
Station lines up to the present time. 

This apparatus has always received the best of care. The steam valve gear of 
the two units installed in 1897 were overhauled in 1908 and 1909, respectively. In 
1911 tests of the apparatus by the Government showed high efficiency and that the 
apparatus was fully adapted to the various loads. 

The examination at this time indicates that the apparatus is in excellent condi¬ 
tion. Steam and air valves were removed and showed slight wear on steam valves 
and no appreciable wear on air valves. Both steam and air cylinders yet show the 
tool marks of the original bore. The steam valve gear of the older units shows some 
wear on the small parts. 

In my opinion, this apparatus should be serviceable for 10 years with ordinary 
repairs and the replacing of minor parts. 

The steam to operate this plant has always been supplied by the Government at 
rates which have been fixed from time to time in proportion to the amount used. 

The steam piping in the compressor room is owned and cared for by the tube 
company. 

The steam required at present is approximately 85 horsepower 20 hours daily. 

The steam and air piping is in excellent condition. 

The terminal machinery at the general post office is in good working condition. 

The present apparatus has replaced from time to time the original machines, up to 
1908, since which time the machines now generally in use were adopted as standard. 
This apparatus operates under conditions which do not impose any great strain or 
pressure on any of the working parts, consequently the wear on all except the small 
auxiliary parts is exceedingly light. 

North Station .—The receiving and dispatching apparatus in this station, which 
has been replaced since the original installation, is in fair working condition and 
handles the carriers without interruption. It apparently should be serviceable for 
several years. 

South Station .—The apparatus at this station was installed as follows: Closed 
receivers in 1903, when the line was put in service. The transmitters were replaced 
in 1908 by improved type. The apparatus is in good working condition. 

Essex Street Station .—The equipment at this station includes the power generating 
apparatus for the 10-inch tube lines to Back Bay Station and Station A, the terminal 
machinery for these lines and also for South Station line, and the shop for repairs to 
carriers. 


PNEUMATIC-TUBE SYSTEM. 


369 


The power is supplied by three 50-horsepower direct-current motors, made by the 
General Electric Co., installed in 1908, to replace the induction motors originally 
installed. Motors are numbered 152747, 15266, and 15268. Volts, 220; amperes, 190; 
revolutions, 560. 

All are apparently in excellent condition. 

Two motors are controlled by combination, remote control panel boards, which 
permits of handling motors from the dispatching point for carriers. Motors are auto¬ 
matically shut down when no carriers are in the line. The spare motor is controlled 
by Standard starting panel. 

The air pressure for lines is furnished by one Connersville belt-driven blower and 
two belt-driven Rand Drill Co.’s duplex air compressors, one of which is operated 
as a spare unit. The air compressors were installed in 1901 and several years later 
were equipped with Corliss valve gear. These units are in excellent condition and 
show very little wear on valves and cylinders. The Connersville blower was installed 
in 1906, to replace a compressor of the above-named type, and is in good condition. 
The belting, which was purchased in 1901, is in fair condition. 

The terminal machinery includes one 8-inch cradle transmitter originally installed 
in 1897 on North Station line, put in service at this station in 1903, in fair condition; 
one 8-inch revolving valve close receiver, installed in 1903, in good condition; two 
10-inch revolving valve open receivers, and two 10-inch revolving valve transmitters, 
installed in 1901, all in good working condition. 

This station being the headquarters of the operating and maintaining force has re¬ 
ceived proper attention and is consequently in excellent condition generally. 

Station A .—The equipment at this station includes the terminal machinery and 
the necessary air piping. All in fair condition. 

Roxbury Station .—The equipment at this station includes the two Rand Drill Co.’s 
duplex belt-driven air compressors installed in 1901 and used alternately on the line. 

The power is furnished by two General Electric Co.’s 50-horsepower alternating- 
current motors, Nos. 64217 and 64241, special No. 16231, type I, form L, class 10-50-720. 
Volts, 550; amperes, 50; cycles, 60. Installed in 1901, and apparently in fair working 
condition. 

The valves and internal parts of compressors are in good condition, but bearing and 
rod boxes show considerable wear. As each unit is used but half the time, with minor 
repairs and proper attention this apparatus should be serviceable for a period equal to 
the time it has already been in service. 

The 10-inch terminal machinery at this station is in good working condition. The 
other apparatus is in fail’ condition. 

Uphams Corner Station .—The equipment at this station includes one belt-driven 
Rand Drill Co.’s duplex air compressor, installed in 1901, and little used, in excellent 
condition; one Connersville belt-driven blower, installed in 1902, in fair condition. 

Power is supplied by two 50-horsepower alternating-current motors made by the 
General Electric Co. Shop Nos. 64215 and 64218, type I, form L, class 10-50-720. 
Volts, 550; amperes, 50; cycles, 60. Installed in 1901. One motor has been used but 
little and is in excellent condition; the other is in fail’ condition. Terminal machinery 
at this station is in good working order. 

The shop equipment at the Essex Street Station is generally in fair condition. % As 
such equipment deteriorates rapidly, some of the small tools have been replaced from 
time to time. The date of purchase on the schedule is approximate, as is also the cost 
price in each case, some of said prices being estimated. 

The sets of carriers in use have been in service for more than a year, but are in serv¬ 
iceable condition at the present time. 

The carriers, in my judgment, should not be considered as equipment, but should be 
charged to the cost of maintenance. 

The force required to operate the system is as follows: One superintendent; 1 night 
inspector; 1 day inspector; general post office, 2 men in engine room, 4 men handling 
carriers; Essex Street Station, 4 men dispatching tubes; North Station, 2 men dis¬ 
patching tubes; South Station, 4 men dispatching tubes; Back Bay Station, 2 men 
dispatching tubes; Station A, 2 men dispatching tubes; Roxbury Station, 4 men 
dispatching tubes; Uphams Corner Station, 2 men dispatching tubes. 

If the operation of the system were placed on an 8-hour day system, in lieu of 10-hour 
day, the number of employees would necessarily be increased proportionately. 

Respectfully, 

Edwin H. Pearson, Chief Engineer. 

78419—13-24 




370 


PNEUMATIC-TUBE SYSTEM. 


EXHIBIT W, ST. LOUIS NO. 1. 

List of equipment , Feb. 5, 1913. — St. Louis Pneumatic Tube Co. 

Note. —Where exact date of purchase or installation of mechanism or equipment is unknown, approx 
mate date is stated as nearly as possible. Where cost was not ascertainable, column is left blank. 


Year 

installed. 


TUBES, ETC. 


Length of 8-inch tubing in use, 3.9760 miles (reported excess over 
official mileage, 0.0830 mile). 

Street vaults, 5. 

Sets of bends, 25 pairs; i. e., 50 sets (estimated average cost, $87 set).. 

Drips, 20. 

Test valves, 6. 

Number of carriers, 528 (average value, $6.75). 

POWER PLANT. 

1 75-horsepower Laidlaw Dunn Gordon duplex steam compressor 
No. 351. 

1 75-horsepower Rand Drill Co. duplex steam compressor, No. 352_ 

1 gauge board. 

1 air receiver No. 362. 

360 feet 8-inch and 10-inch air pipe, 10 gates, 8-inch. 


1903-4 


1904 

1908 

1904 


0 ) 

( 2 ) 


1904 


1904 

1909 

1904 

1904 


GENERAL POST OFFICE. 

Terminals: 

1 revolving-valve closed receiver, No. 350. 
1 gravity transmitter, No. 358. 

BRIDGE POST OFFICE. 

Terminals: 

1 revolving-valve closed receiver, No. 359. 
1 gravity transmitter, No. 360. 


1904 

1904 


1904 

1904 


SHOP EQUIPMENT. 


1 lathe. 

1 drill press. 

1 grinder.. 

1 motor and line shaft, belt, etc. 

Soldering apparatus, hose, mandrel, holder 

Miscellaneous tools, 50 items. 

Carrier parts, etc. 

Machine parts, etc. 


1904 

1904 

1904 

1904 

1911 


( 3 ) 

( 3 ) 

( 3 ) 


STREET EQUIPMENT. 

Force pump. 

Rods.. 

Miscellaneous shovels. 

Picks. 

Drills, etc., for street work, 71 linear feet. 

Manhole covers. 

Bends, extra sections, 92.!!!!!! 

Closure, etc., 4, drip box.... 

Emergency dutchmen, new. 

Miscellaneous street tools. 

EQUIPMENT CENTRAL STATION. 

Terminals: 

2 revolving valve open receivers, Nos. 353 and 354, at $8.50. 

2 gravity transmitters, Nos. 355 and 356, at $6.50. 

TUBING. 

700 feet finished 8-inch tubing, stored at Roth Tool Co.; 457 feet short 
lengths tubing, United States customhouse. 


1904 

1909 


( 3 ) 

( 3 ) 


None. 


1908 

1904 

1912 


( 3 ) 


1904 

1904 


1903-4 


1 Various since 1904. 

2 Average age, 4 years. 


3 Various. 
*Since 1904. 


Cost. Condition. 




$66,468. 55 

Excellent. 

1,000. 00 

Do. 

4,350. 00 

Do. 

800.00 

Do. 

30.00 

Do. 

3,564.00 

Fair. 

4,000.00 

Excellent. 

4,000. 00 

Do. 

40.00 

Do. 

250.00 

Do. 

889.00 

Do. 

1,400. 00 

Do. 

650.00 

Do. 

1,400. 00 

Do. 

650. 00 

Do. 

200. 00 

Fair. 

90. 00 

Do. 

25.00 

Do. 

225. 00 

Excellent. 

50.00 

Good. 

60.00 

Do. 

330.00 

Excellent. 

476.00 

Do. 

5. 00 

Fair. 

7.50 

Good. 

5. 00 

Do. 

4.00 

Do. 

71.00 

• Excellent. 

749.00 

New. 

100. 00 

Excellei t. 

225. 00 

Do. 

146.00 

Good. 

17. 00 

Excellent. 

13.00 

Do. 

1,232.55 



i 


































































































































































































































































































































































































































































































































































































































































































PNEUMATIC-TUBE SYSTEM. 


371 


List of equipment, Feb. 5, 1918. — St. Louis Pneumatic Tube Co. —Continued. 



Year 

installed. 

Cost. 

Condition. 

MISCELLANEOUS STOCK AND TOOLS. 

Melting furnace on wheels for 500 pounds lead. 

500 bolts, f by 3J inches. 


$50. 00 
17. 50 
35. 00 
56. 00 
50.00 
10.00 
20.00 
250.00 

1,350.00 
170.00 

Under re¬ 
pair. 

Fair. 

Do. 

400 feet black pipe, f inch to 2 inches, and 100 pounds fittings. 

1,400 pounds new lead. 


200 pounds wrought iron pipe hangers with turnbuckles. 

Tool box. 


2 test mandrels. 


1 extra gravity transmitter, stored at R. Jacob Engineering Works .. 

1 extra closed receiver, stored in customhouse. 

Office furniture and fixtures, 15 items. 

1904 

1904 

0) 


1 Since 1904. 

Note.—A ll the items of this survey have been personally examined and the values determined by com¬ 
parison as far as possible. Where no basis existed for comparison the cost of labor and material were esti¬ 
mated. 

Note.—N ecessary air piping, auxiliary piping, wiring, tools, etc., go with the equipment. 


EXHIBIT X, ST. LOUIS, NO. 2 

Report of Stoppages in Pneumatic Tube Service Between Main Post Office 

and Stations During Calendar Year 1912. 

United States Post Office, 

St. Louis, Mo ., February 20, 1913. 


Date. 

Between— 

Duration. 

January. 



February. 



March. 



Apr. 8. 

Apr. 22 . 

Main office and annex station... 
.do. 

7.37 to 8 p. m. 

11.15 to 12 p. m_ 

8.05 to 8.40 p. m... 
2.55 to 12 p. m. 

Apr. 24. 

.do. 

Apr. 26. 

.do. 

Apr. 27 

. .do. 

4 to 8.25 a. m. 

Apr. 30. 

.do. 

7.25 a.m. to 12 p.m. 
8 to 9 p. m. 

May 13 

Main office and annex. 

.Tune 



July 15. 

Aug. 22. 

Aug. 29. 

Sept. 30. 

October. 

Main office and annex. 

Main office, annex, and bridge 
stations. 

Main office to annex. 

Main office and annex. 

7.15 to 11.30 p. m.. 
7.55 to 9.50p. m... 

7.50 to 8.22 a. m... 
12.10 to 12.39 p. m. 

NAvAmher 



Dfw.mher 







Cause. 


Unknown. 

Breaking of hinge on carrier. 

Not known. 

Carriers lodged in tubes. 

Caused by a washout under the 
tracks of Terminal Railroad, 
due to defective guttering on 
train shed, whereby the drain 
during unusually heavy rains 
had been deflected to one place. 

Blockade in tube. 

Unknown. 

Do. 

Tube machinery out of order. 

Not known. 

Do. 


EXHIBIT Y, ST. LOUIS, NO. 3. 

St. Louis, Mo., February 21, 1913. 

Commander Alfred Brooks Fry, Consulting Engineer, 

No. 121 United States Customhouse , New York City, N. Y. 

Sir: In compliance with your letter dated February 7, 1913, appointing me as your 
assistant in determining the physical condition of the property of the St. Louis 
Pneumatic Tube Co., I have the honor to make the following report: 

Power-generating apparatus. —The power-generating apparatus is that owned and 
operated by the Treasury Department, consisting of three 175-horsepower Babcock 
& Wilcox "water-tube boilers with down-draft furnaces and two 200-liorsepower 
boilers of the same manufacture, and with the same kind of furnaces, together with 






































































372 


PNEUMATIC-TUBE SYSTEM. 


the usual auxiliary apparatus. The boilers are all in good condition for service. 
The plant is not nearly used up to its capacity. The Government owns the steam 
headers and exhaust pipes, separators, and flow-steam meters up to the point of 
entrance into the tube company’s engine room. 

Air compressors.-— The air compressors are owned by the tube company and consist 
of the following machines: One Laidlaw-Dunn-Gordon cross-compound Corliss-valve 
steam engine, with a tandem air cylinder on each side. The diameters of the steam 
cylinders are 11 inches and 18 inches and that of the air cylinder is 24 inches. The 
stroke is 24 inches and makes, approximately, 50 revolutions per minute in regular 
service. The other compressor unit is a Rand, similar in every respect to the Laidlaw, 
except that the stroke is 20 inches, and the diameter of the high-pressure steam cylinder 
is 10 inches, and that of the air cylinder is 26 inches. These compressor units are both 
in excellent condition, both from the standpoint of wear and steam consumption. 
Examination of the interior of the air cylinder of the Laidlaw showed practically no 
wear. The tool marks were about as distinct as those in the new cylinder. The 
rods are not scored nor shouldered, and the valve motions are all in first-class condi¬ 
tion. The steam consumption for both units for this load is, approximately, 1,800 
pounds per hour. This is slightly more than 50 horsepower, or one-third the rated 
capacity of the compressors. The light load and slow motion, with the good mainte¬ 
nance of these units, make the amount to be charged off for depreciation much smaller 
than normal. 

The terminals.■ —The central station at Eighth and Olive Streets, consists of two re¬ 
volving valve open receivers, Nos. 353 and 354, and gravity transmitters No. 355 
and No. 356. The condition of the receivers was determined by careful inspection 
of the machines in operation and by opening them and making micrometer measure¬ 
ments of the wear or enlargement of the diameter, taken vertically and horizontally. 
All the moving parts were free from vibration or noise, and no indications of wear. 
The diameter of the receivers 18 inches back of the valve was 8.140 and 8.142, while 
the diameter of new straight pipe is 8.140 inches. The transmitters have a larger 
throat for obvious reasons, and are subject to somewhat more wear, the vertical diam¬ 
eter being 8.282 inches and the horizontal 8.250, or an apparent wear of thirty-two one- 
thousandths of an inch in the service to which it has been subject. The receiver 
used on the Bridge line shows only a difference of three one-thousandtlis of an inch 
between horizontal and vertical diameter. The depreciation is a negligible quantity. 
The terminals at the Bridge post office consist of one revolving valve closed receiver 
No. 359 and one gravity transmitter No. 360, both of which are essentially new. 
The variation on diameters is five one-thousandtlis of an inch in the receiver and 
ten one-thousandths in the transmitter. The machines are in perfect condition as to 
operation. 

The terminals at the new post office consist of one revolving valve closed receiver 
No. 350, and one gravity transmitter No. 358. A close inspection revealed no defects 
in the mechanical parts. The micrometer measurements of the receiver were 8.125 
and 8.145, a loss from wear in the bottom of twenty one-thousandths of an inch. 
The loss in the transmitter amounts to thirty-one one-thousandths. 

The machines have been kept painted, and the bright parts polished, and all have 
the appearance of new apparatus. 

General conditions of the tube line. —The original tube was laid with cast-iron bell 
and spigot water pipe bored out with boring bar, and the ends finished with an align¬ 
ing nipple and socket, and the sections united with a calked lead joint. The bends 
were originally all of seamless drawn brass with flanges sweated on and bolted up to 
flanges on iron specials. About five years ago all the brass bends were renewed, and a 
new style cast-iron sectional bend was adopted which, for the 90° bends, have 
6 sections. The sections are machined first m a lathe for the flanges, then drilled 
for bolts and then finished in a special grinding machine operating on a curve of the 
radius used in the streets. There are in use 24 bends of 90°, and 26 bends of 4 sections 
each of 45°. These bends are far superior to the brass bends originally installed. 

An effort was made to determine the probable injury that had occurred from elec¬ 
trolysis, and the information obtained from the St. Louis water department was to the 
effect that no appreciable damage had been done in the district covered by the tubes. 
Voltmeter tests were repeatedly made in all this territory, with the result that only 
a fraction of a volt of current pressure could be found, if any. 

The water department also reports that the soils of St. Louis are very free from 
agents producing chemical action on the cast-iron pipe. 

Herewith you will find exhibits as follows: Record plans of the underground tubes 
and other property; plans of changes in line to the new post office, 2 sheets; plans of 
compressor plant and other parts of the system, 11 sheets; engraved map of the city 
district indicating route of the lines. 

Very respectfully, Edwin S. Hallett, 

Engineer. 


PNEUMATIC-TUBE SYSTEM. 


373 


EXHIBIT Z. 


Boston, Mass., February 25 , 1913 . 

A. B. Fry, Consulting Engineer , 

Congressional Committee, Customhouse Building , JVcit; Lbr£ Cfp/. 

Dear Sir: In the last paragraph of the memorandum of general expense in the 
development and construction of pneumatic mail tubes, which I handed you yester¬ 
day, the item of. $193,342 appears as the estimated value of abandoned tube equip¬ 
ment in the various cities. You asked that this amount be separated with respect 
to the various cities. The separation is as follows: 

Boston.... 

New York 
Chicago.. 

St. Louis. 


193, 341. 76 


$8, 700. 64 
144, 879. 80 
34, 718. 00 
5, 043. 32 


In reference to the appraisal which I understand you are making of the pneumatic- 
tube systems, permit me to call your attention to the large amount of money that has 
been expended by the tube companies on the buildings in which the post-office sta¬ 
tions are located that have tube connections. In some cases it has been necessary for 
the company to tear out and rebuild partitions and floors and make other alterations 
before the tubes and machinery could be installed. This has been a large item of 
expense, which does not appear upon examination of the stations at the present time, 
unless pointed out by some one who was familiar with the original work of installation. 
Wherever air-compressing machinery has been installed foundations had to be con¬ 
structed. In the new buildings that have been erected for the exclusive use of the 
post office, such as stations I and J, space was provided for the pneumatic-tube equip¬ 
ment, so considerable expense was saved the company; but in all of the older buildings 
the company has been obliged to spend more or less on the buildings to prepare them 
for the tube equipment. 

Respectfully, yours, American Pneumatic Service Co., 

B. C. Batcheller, Chief Engineer. 


EXHIBIT Za. 


Would the Installation of Larger Pneumatic Tubes or Automatic Electric 
Railway Tunnels Restrict to Any Extent the Further Installation of 
8-inch-Diameter Pneumatic-Tube Systems ?—The Standard Size Adopted 
by the United States Post Office. 


(Prepared by M. L. Emerson, Nov. 15, 1912.) 


CONCLUSIONS. 


A careful investigation of this subject results in the following conclusions: 

First. The question as to the size tube or tunnel to be used between different 
points is practically a question of cost. The size of the tube is figured not necessa¬ 
rily to carry the total traffic but to carry that traffic from which a sufficient revenue 
is derived to pay for the service. 

Second. The 8-inch-diameter pneumatic-tube system is well adapted for carrying 
the first-class mail and other mail within its capacity. Its use is justified by the 
service which it renders and not by its cheapness as a means of transportation. _ It 
seems probable that it will ultimately connect the larger post offices in the principal 
cities. 

Third. Tubes or tunnels sufficiently large to carry all the mail will be built in 
many instances. The adoption of the parcel post should hasten their use. Their 
particular field, as far as postal service is concerned, would seem to be to connect 
general post offices and railway depots, particularly when the two are some distance 


Fourth. The use of the two types of systems will not conflict in any way and one 
will not supersede the other. They occupy distinct fields. The small-size system 
is justified by the fact that it speeds up the delivery of first-class letter mail, special- 
delivery letters, and intercity mail, all of which pays a high rate per pound in order 
to secure service as well as transportation. The large-size system is for handling 








374 


PNEUMATIC-TUBE SYSTEM. 


bulk mail. It is a means for removing traffic from the street and for more quickly 
and safely, but at a greater cost, carrying this class of mail. 

In even a superficial investigation of this question, two pertinent and convincing 
facts immediately appear as follows: 

First. The 8-inch diameter pneumatic-tube systems, “the standard size adopted by 
the United States Post Office,” received the most careful investigation and study by 
United States postal experts previous to the acceptance of this size as a standard in 
1-898. In addition, further investigations were made in 1900, 1905, and 1908 by dif¬ 
ferent commissions of postal experts. These commissions without exceptions indorsed 
the 8-inch diameter pneumatic-tube system as a standard for postal use. 

Second. The proposed use of a pneumatic tube or tunnel sufficiently large to carry 
all the mail is not a new idea. A pneumatic-tube system composed of two large tunnels 
4^ feet wide by 4 feet high was built in London in 1872. This system was 2f miles 
long, and connected Euston Station with the general post office. One tunnel was 
for the up traffic, and the other for the down. The tubes were operated by the vacuum- 
pressure system; in other words, the carriers were sucked through one tube by the 
creation of a vacuum and forced through the other tube by an increase of air pressure. 
The system was able to transport over the whole line an average of a ton of mail a 
minute, and at a speed ayproximately 14 miles an hour. The system was used to 
transport mail in bulk, but it was found to be slow and unsatisfactory, and was soon 
abandoned. 

The United States Post Office Department, on the advice of its own experts, adopted 
the standard diameter pneumatic-tube system which is now used for the transporta¬ 
tion of mail between post offices and railway stations in the larger cities. The tube 
in this system is 8 inches inside diameter. This size was determined upon only after 
most careful investigation by a commission of post-office officials. Subsequent to the 
adoption of this size tube, and after the installation of different systems of this type, 
commissions of post office experts in 1900, 1905, and 1908 again considered this ques¬ 
tion. Each commission without exception approved of the standard size diameter 
pneumatic-tube system previously adopted. The following quotations from reports 
of two of these commissions are pertinent: 

Charles Emory Smith, Postmaster General, commenting on the report of 1900 inves¬ 
tigating committee, which was appointed by act of Congress, says: “The committee 
fully sustains the pneumatic method of mail transportation as a valuable and me¬ 
chanically successful system, * * * and is unanimous in recommending the re¬ 
tention of the service as it now exists and its limited extension as specifically indi¬ 
cated. It can no more be discarded than a fast mail train.” The 1908 investigating 
committee, which was also appointed by act of Congress, says in its report: “Standard 
of economical system: The opinion is quoted of the chief mechanical expert on pneu¬ 
matic tube questions that the standard of mechanical efficiency is best represented 
by a tube 8 inches in diameter rather than by one of larger diameter.” * * * 

Among their other conclusions the following apply to the question under considera¬ 
tion: 

** First. The pneumatic tube service is a very important auxiliary for the rapid 
transportation of first-class mail in the most important cities, and performs a function 
not at present obtainable by other means. Second. Its constant availability makes 
it particularly appropriate for special-delivery service, for all first-class mail of local 
origin for local delivery, for supplementary closings of first-class mail for dispatch by 
train, and for advance dispatches of first-class mail from trains for city delivery.” 

Many considerations enter into the determination of the proper size to be adopted 
for a pneumatic tube system. The two main questions are the capacity of various 
size systems, and their cost both to build and to operate. Pneumatic tube service 
is not a cheap means of transportation, at least when the question of speed of delivery 
is not concerned, and it is judged as a transportation means alone. For this reason 
the postal experts immediately realized and agreed that first-class or letter mail alone 
paid sufficient revenue for such a service. The decision then was to adopt as a stand¬ 
ard a pneumatic tube system of a size sufficiently large to carry the first-class mail. 
A tube 8 inches in diameter, which has a capacity of 200,000 letters per hour in either 
direction, was considered to be amply large to provide for future expansion as well 
as the then existing amount of mail. The foresight of this early commission is amply 
confirmed by the report of the last investigating committee in 1908, which states 
that the capacity of these tubes is utilized approximately as follows: 

The greatest extent to which the capacity of any of the tubes is utilized was 66.6 
per cent. Of the tubes in service approximately 15 per cent were used to over 50 

E er cent of their capacity, approximately 28 per cent were used to over 25 per cent 
ut less than 50 per cent of their capacity, approximately 10 per cent were used to 
over 10 per cent but less than 25 per cent of their capacity, and approximately 47 per 


PNEUMATIC-TUBE SYSTEM. 


375 


cent were used less than 10 per cent of their total capacity. It is self-evident that 
hadjthese tubes been of larger diameter the proportion of their total capacity utilized 
would have been far less than the percentages given above. It is evident, therefore, 
that an 8-inch system is amply large for the service intended. 

In determining on the use of an 8-inch-diameter system, it was also decided that 
this system should be utilized for all other classes of mail which could go through it, 
since by so doing its efficiency would thereby be increased. 

An 8-incli-diameter pneumatic tube system is not, of course, large enough to carry 
all the mail. The main reason for not adopting a system sufficiently large for this 
purpose was evidently that traffic in most instances, at least, would not bear the tax. 
This condition is explained by the following facts: 

The mail carried by the United States Post Office can, in a general way, be divided 
into two classes. One class is represented by letter mail, which pays a high rate for 
transportation—i. e., 32 cents per pound. In fact, this is the minimum rate, for few 
letters weigh 2 ounces, and consequently the actual rate per pound is approximately 
$1, for the Post Office figures 50 letters to the pound. This class of mail is not paying 
for transportation alone, but is also paying for service. It demands to be sent to its 
destination in the quickest possible time, and it is the endeavor of the Post Office 
Department to carry out this condition. The other class of mail can, in a way, be 
represented as freight. It pays for transportation alone, and not for quickness of 
dispatch or for service. Its rate of pay is as low as.l cent per pound. It is self- 
evident, therefore, that the Post Office can afford to pay a much higher rate for trans¬ 
portation for one class of mail than for the other. 

There were other reasons for adopting an 8-inch pneumatic tube system, though 
these reasons are not so important. One of the profitable branches of the Post Office 
is the Special-Delivery Service. The point in sending a special-delivery letter is 
to have it immediately forwarded to its destination. With a large-size pneumatic 
tube system the cost of transporting a single letter, or even several letters, in a large 
carrier would be prohibitive. The large system, therefore, would not have the 
advantage of being constantly available for handling the mail. 

Again, to be effective, the machinery of such a system must be directly in the 
workroom, so that time will not be lost in taking mail from and to the system. The 
carrier in which the mail is transported must not be too heavy for a man to handle 
both quickly and without a tackle. It must also be possible to transmit the carriers 
with a close interval of time between them. In the 8-inch system the machinery 
is placed directly in the workroom. Its size and weight clearly indicates, however, 
that machinery for a much larger system would necessarily be placed in the base¬ 
ment. The carriers of the 8-incli pneumatic tube system weigh approximately 30 
pounds when loaded, and are dispatched as rapidly as 7 or 8 a minute. 

Another reason for not handling all the mail by tube or tunnel, and this is a reason 
which can not be overlooked, is the fact that machinery of any description is liable 
to breakdowns. The United States mail can not be delayed for any cause whatso¬ 
ever, and auxiliary means must, therefore, be provided to cover such a situation. 
This auxiliary service would probably consist of a set of automobiles held in reserve. 
If such a service were to be installed, it could well be used to carry the bulky classes 
of mail. If this were done, one of the reasons for making the tubes sufficiently large 
to carry this class of mail would then be lost. 

At the present time postal pneumatic-tube service is used by the Government in six 
different cities. The length in miles of double pneumatic tubes and the cities where 
located is as follows: 


Boston. 6. 7740 

Brooklyn. 1. 3500 

Chicago. 9.6017 

New York. 25.7689 

Philadelphia. 10.0000 

St. Louis. 1.9465 


Total. 55.4411 


It is estimated, omitting the pneumatic-tube system in Philadelphia, which this 
company does not operate, that the pneumatic-tube systems in other cities are trans¬ 
porting approximately 18,154,000 letters a day, or 5,682,202,000 letters a year. At this 
rate the cost per letter carried is 0.0136 cent each, or, expressed in another way, 1,000 
letters are carried for 13.6 cents. Allowing 50 letters per pound, therefore, this mail is 
being carried at the rate of 68 cents a hundred pounds. 

It is evident, of course, that many letters carried in pneumatic tubes for one reason 
or another derive no benefit from this fast service. A commission appointed by the 










376 


PNEUMATIC-TUBE SYSTEM. 


Government in 1908 to investigate pneumatic-tube systems looked into this question. 
They reported that the cost per letter for mail which actually reached its destination 
earlier because carried by pneumatic-tube service was 0.06 cent. This is at the rate 
of 60 cents a thousand letters. In this calculation 2,600,000 letters which were actually 
benefited were charged the total cost of the service. There were at the same time 
11,564,000 letters which were transported free, since they were apportioned no.part of 
the cost. 

The pneumatic tube is a mechanical device, and for this reason is subject to break¬ 
downs and interruptions. In some of these breakdowns, particularly when a carrier 
has an accident while in transit through the tube, or a leak permits surface water to 
enter the tube, mail is damaged. During the company’s last fiscal year there were 
240 interruptions to tube service. There were 78.7 lines of tube in service. The 
average number of interruptions per line was 3.05. Each line operates approximately 
6,780 hours per year, which is at the weekly rate of 20 hours per day, and 10 hours on 
Sunday. These shutdowns represent, therefore, approximately one shutdown in 
every 2,200 hours of service. The Government fines the company when mail is 
damaged for reasons within its control. The fines for the last Government year for 
this cause totaled $48. As nearly as can be estimated one piece of mail is damaged or 
soiled in every million pieces handled. Of those damaged, probably less than 5 per 
cent are destroyed to the extent that it is impossible to deliver them. 

In connection with the use of 8-inch diameter pneumatic tube systems, their special 
utility for city service is also to be noticed. This applies not only to special delivery 
letters, but to all intercity mail as well. This class of mail represents a large per 
cent of the total volume carried. It is also the class of mail from which the most 
profit is derived, and therefore the service for which the Government is justified in 
spending the most money. It is estimated that the Government makes approximately 
1 cent on each letter of this class. 

Considering further the question of the use of pneumatic tubes or automatic electric 
railway tunnels sufficiently large to carry all the mail between certain points, it is 
evident that there is a considerable field for installations of this kind. The particular 
use for such a service is indicated above, i. e., where the general post office is located 
at some distance from the principal railway depots. There may be instances, also, 
where post offices other than the general post office would have a sufficient volume of 
business to warrant such an installation. The principal use of such an installation, 
however, as must be evident, is that of carrying bulk, whereas with a small pneumatic 
tube the question is that of speed and of service. 

An installation of this kind is in reality a miniature railway. It requires space for 
terminals, switches, sidings, etc., and these must necessarily be located in the base¬ 
ment of buildings with which it connects. For this reason additional mechanical 
appliances will be required to carry the mail to and from these basements. Again, 
in operating such a system sufficient space must be allowed between each car or train 
in order to permit their proper and safe handling in stations. All these factors will 
tend to slow down the rate of speed at which mail can be transported from its point 
of origin to its point of destination. 

The great and determining element in the use of such systems, however, must be 
their cost of installation and operation. Leaving aside all other considerations, it is 
unquestionably a fact that if a system for handling all the mail could be installed 
and operated at the same cost as a system for handling first-class mail only, such a 
system would be adopted, even if the first-class mail were not handled so rapidly as 
it would be in a smaller system. The cost of constructing any systems of this type, 
however, must vary, roughly, as the diameter of the system. Assuming an 8-inch sys¬ 
tem to cost $80,000 per mile, a system 30 inches in diameter might therefore cost 
approximately $300,000 per mile. It seems evident therefore from these figures that 
the use of such a system must necessarily be limited to connections with the most 
important post offices, and then only in the very large cities. 

To sum up, it seems probable that ultimately a combination composed of the 
standard 8-incli diameter pneumatic tubes and of tunnels sufficiently large to carry 
the bulk mail will be installed in a few of the largest cities. The 8-inch tubes will 
handle the first-class mail, the quick connections to and from mail trains, and most 
particularly the intercity mail and the special delivery letters or telegrams. 

The tunnels will handle the bulk mail and the parcel post. The tunnels will con- 
nect but one or two of the principal mailing points, whereas the pneumatic tubes 
will form a network extending to the surrounding postal districts as far as the traffic 
can afford it. It seems probable that the size of these tunnels will vary from the 30- 
incli tubes now proposed to tunnels large enough to contain trains operated by motor- 
as io. the Illinois tunnel, so called, of Chicago. There is no reason, also 
why the pneumatic tubes should all be a standard 8-inch diameter. They will prob- 


















< 
































INTERSECTION OF SEVENTEENTH STREET AND SIXTH AVENUE, NEW YORK CITY, 1906. 




















CARRIER DATA. POSTAL PNEUMATIC TUBES. MARCH 17, 1913. 


10-INCH TUBE. 

Outside diameter, 8 $ inches. 

Inside diameter. 8| inches. 

Length outside, 27 inches. 

Length inside, 24 inches. 

Weight, about 44 pounds. 

Average number of’letters that can be stowed, say 1,000. 
Maximum number of letters that can be stowed, say 
1,200 to 1,500. 


8-INCH TUBE. 

Outside diameter. 7 inches. 

Inside diameter, 6j inches. 

Length outside 24 inches. 

Length inside, 21 inches. 

Weight, about 23 pounds. 

Average number of letters that can be stowed, say 350. 
Maximum number of letters that can be stowed, say 500 
to 600. 







PNEUMATIC-TUBE SYSTEM 


377 


ably vary to as small as 3 inches in diameter, depending of course upon the volume 
of business which they are to carry. 

With all of this service, however, it seems certain that the 8-inch tube, which size 
was only adopted after most careful consideration, will continue to be the standard 
size for connecting United States post offices. The principal reason for keeping to 
this size, particularly in cases where the traffic may not actually be heavy enough for 
so large a tube, is that its use will permit interchangeability of carriers in the same way 
as a standard-gauge railway permits the interchange of railway cars. In short, no facts 
have as yet been presented which tend in any way to upset the recommendations of 
the United States post-office experts that the 8-inch diameter pneumatic tube system 
is best adapted for handling the United States mail. 


EXHIBIT Zb. 



Dear Sir: I transmit herewith— 

(а) A photograph showing the 8-inch and 10-inch types of carrier now in service on 
the postal pneumatic tube systems. 

The 10-inch is in use only in Boston on the lines that were originally designed for 
express business. 

The 8-inch is in general use everywhere; being supplemented to some extent by the 
use of a 6-inch carrier on a single line, i. e., the Bourse line of Philadelphia. 

A slip containing the material data concerning said carriers is pasted on the photo¬ 
graph. 

(б) A photograph which shows the manner in which the pneumatic mail tubes had 
to be interlaced in order to get them up Sixth Avenue at the intersection of Seven¬ 
teenth Street, and also illustrates the depth to which the excavation for this purpose 
had to be carried. 


Respectfully, 


Alfred Brooks Fry, 

Consulting Engineer. 


78419—13-25 




REPORT OF MR 


NATHAN R. WILLIAMS. 


Washington, D. C., March 3,1913. 
The Commission to Investigate the Pneumatic Tube Postal System: 

Dear Sirs : I transmit herewith a report upon the franchise rights 
of pneumatic tube companies in cities where the same are now in¬ 
stalled; their rights of way; their patents; and infra, patent monop¬ 
oly, Government use of patents, and laws involved. * * 

Very respectfully, 

Nathan B. Williams, Attorney. 

Principal features of franchise or license requirements. 

TUBES. 

Boston: No limitation on the size. 

New York: Diameter not to exceed 3 feet, under New York Mail & Newspa¬ 
per Transportation Co. charter. 

Chicago: Eight inches. 

St. Louis: No limitation. 

Philadelphia : No limitation. 


USE. 

Boston: Carriage of mail, messages, merchandise, and other articles. 

New York: Letters, parcels, packages, mails, messages, and other property. 
Chicago: Restricted to United States mails. 

St. Louis: Restricted to United States mails. 

Philadelphia: Restricted to United States mails. 

CONTROL. 

Boston : Commissioner of public works. 

New York: Commissioner of public works. 

Chicago: Commissioner of public works. 

St. Louis: Board of public improvements. 

Philadelphia: Department of public works. 

REMOVAL. 

Boston: City council may require removal at any time. 

New York: No provision. 

Chicago: No provision. 

St. Louis: No provision. 

Philadelphia: No provision. 


REPAIRS TO STREETS. 

Boston: Person opening surface of street must make repairs for 12 months. 
New York: Streets must be restored and maintained. 

Chicago: Deposit covering estimates for repair costs must be maintained. 
St. Louis: Deposit covering estimates for repair costs must be maintained. 
Philadelphia : Repairs must be maintained for three years. 

378 



PNEUMATIC-TUBE SYSTEM. 


379 


DURATION OF FRANCHISE. 

Boston: Occupancy of streets revocable on order of city council. 

New York: Twenty-five years from 1897. 

Chicago: Twenty years from October 12. 1903, with right of purchase after 
October 12, 1913. 

St. Louis: Twenty five years, presumably from June 10, 1903. 

Philadelphia : No term. 

FRANCHISE PAYMENTS. 

Boston: None: 

New York: Tubular Dispatch Co. paid 2 per cent of gross earnings; New York 
Mail & Newspaper Transportation Co. $1 for every 100 yards of tubes. 

Chicago: Three per cent of gross revenue for first four years, 5 per cent of 
the gross revenue for the remaining 16 years. 

St. Louis: None. 

Philadelphia : None. 

MISCELLANEOUS. 

New York: New York & Newspaper Transportation Co. has contract with 
Brooklyn Bridge for period terminating March 1, 1922. 

EXISTING PNEUMATIC SERVICE CONTRACTS. 

The contracts for Boston, New York, Brooklyn, Chicago, and St. 
Louis are with the American Pneumatic Service Co., or subsidiaries, 
while the contract for Philadelphia is with the Pneumatic Transit Co. 
The principal features of the contracts are as follows: 

1. Provide, maintain, and operate under proper franchise. 

2. Make all construction, repairs, furnish power, and relocate without 
expense. 

3. Install tubes, receiving and dispatching machinery. 

4. Remove tubes, etc., from post office and stations at expiration of term at 
contractors’ expense if required by Postmaster General. 

5. Convey all mail which in judgment of postmaster should be transported 
through tubes, and perform service 20 hours per day. 

6. Contract speed is 30 miles per hour. 

7. Carry all mails by other means on occasions of stoppage of tubes, subject 
to deductions in compensation. 

8. Employees to be 16 years of age and read and write the English language. 

10. Use tubes for no other purpose. 

11. Be accountable in damages and save Government harmless from same. 

12. Transmit no mail, letters, packets, or newspapers contrary to the laws of 
the United States. 

13. Pay over all moneys belonging to the United States. 

SPECIAL STIPULATIONS. 

Postmaster General may annul for repeated failures and for violations of the 
contract. 

Postmaster General may deduct by way of fines for damaging the mail or 
for other delinquency. 

No Member of Congress to be interested in contract. 

Contractor warrants no infringement of patents and contracts to save Gov¬ 
ernment harmless from all such claims. 

FRANCHISES AND ORDINANCES. 

BOSTON. 

The Boston Pneumatic Transit Co., with whom the contract is 
made, and which is a subsidiary of the American Pneumatic Service 


380 


PNEUMATIC-TUBE SYSTEM. 


Co., operates under two ordinances, that of November 30, 1896, 
granting permission— 

To tlie Boston Pneumatic Transit Co. to lay and maintain underground con¬ 
duits for pipes and tubes, with suitable manholes therefor, for the purpose of 
transmitting United States mail, messages, commercial bundles, packages, mer¬ 
chandise, and other articles by means of pneumatic power from place to place 
in and under the following-named streets of the city (see ordinance) ; the work 
of laying said conduits to be done on or before January 4, 1S9S. And under a 
further franchise granted February 18, 1898, adding additional streets and 
without limitation as to time. 

The superintendent of streets is authorized to grant permits. 

ORDINANCES. 

Chapter 3 of the ordinances of the city of Boston, 1908, creates a 
street department, in charge of a superintendent, now commissioner 
of public works, who is given general charge of all streets and public 
ways. 


NEW STREETS. 

Except in the case of obvious necessity, the surface of new streets 
shall not be disturbed for the space of one year by any department 
or person (sec. 8). 

Persons opening streets are required to repave or resurface if re¬ 
quired at any time within 12 months from the time such opening was 
made, and on failure to do so the superintendent shall make the neces¬ 
sary repairs at the expense of the person opening the surface of the 
street. Permits given shall require the placing of the usual safe¬ 
guards, both by day and night, in the way of lights, movable fences, 
etc. (sec. 9). 


REMOVAL. 

The laying by authorized persons of pipes and conduits under the 
surface of streets shall be on the conditions prescribed in section 9, 
and such persons— 

Shall remove the conduits and wires whenever directed, and not until directed 
so to do by the city council, and shall not disturb or interfere with any pipes, 
wires, or sewers lawfully laid in such streets or connected therewith (sec 15). 

BOND. 

Those to whom permits are issued must give a bond in from $1,000 
to $20,000, depending upon the character of the work (sec. 17). 

CONCLUSION. 

It thus appears that the franchises under which the Boston Pneu¬ 
matic Transit Co. is operating in the city of Boston are in the nature 
of revocable licenses, subject to be determined at any time by the city 
council of Boston. 

The ordinances are set forth below, together with a letter from the 
corporation counsel of Boston. 


PNEUMATIC-TUBE SYSTEM. 


381 


Section 9 of chapter 9 of the ordinances of the city of Boston, 
referred to in the letter of Joseph J. Corbett, corporation counsel 
of Boston, follows: 

Said commissioner may issue permits to persons having authority in the 
premises to open, occupy, obstruct, and use portions of the streets, and should 
the portion of the street which has been so opened or used require repaving or 
resurfacing within a period of two years from the time it has been so used, the 
commissioner shall notify the person applying for the permit under authority 
of which the portion was so used to make such repairs as in the opinion of said 
commissioner are necessary, and in case of the failure of the said person to 
make such repairs within one week from the date of the said notification, then 
the commissioner shall have the right to make such necessary repairs, and the 
expense of the same shall be paid by such person; all amounts received by the 
city collector for work done or materials furnished under notification of the 
commissioner as above authorized shall be placed to the credit and used as a 
part of the appropriation for the public works department. 

Every permit issued as aforesaid shall specify the time, place, size, and use 
of such opening, occupation, or obstruction, and the time within which the 
street must be put in good condition, and shall be on a condition the terms of 
which shall be those stated in chapter 3, section 21, of the Revised Ordinances 
of 1898, and in addition that the person applying for the permit shall place and 
maintain from the beginning of twilight, through the whole of every night, over 
or near the place so occupied, opened, obstructed, or used, and over or near any 
dirt, gravel, or other material placed in or near such place, a light or lights 
sufficient to protect travelers from injury; shall place and maintain a safe and 
convenient way for the use of foot travelers and for vehicles around or over 
such place; shall protect such trees as shall be designated by the superintendent 
of public grounds in such manner as he shall specify; shall provide suitable sani¬ 
tary accommodations for his employees; shall, if he does not within the time 
prescribed by said commissioner, put the street into good condition satisfactory 
so said commissioner, pay whatever sum the said commissioner shall expend 
for putting it into such condition; and shall deliver up the permit to an officer 
of the police force of said city on or before the expiration of the time fixed in 
the permit for completing the work, such permit to be returned by said officer 
to the public works department. 

Said commissioner may, in addition to said specifications, specify in the 
permit, or after the issuing thereof, in writing, the kind of rail or fence to 
inclose the place and the kind of way over or around such place and the manner 
of constructing the same. If such a permit is issued to a public service corpo¬ 
ration, said commissioner shall detail an inspector to supervise said opening, 
occupation, and use. Said inspector shall see that the back filling is properly 
done and the surface repaved or resurfaced to the satisfaction of the commis¬ 
sioner, and a bill shall be deposited monthly with the city collector against the 
corporations whose work has been inspected for the wages or salaries of said 
inspectors. All moneys received by the city collector for such inspection as 
above authorized shall be placed to the credit and used as a part of the appro¬ 
priation for the public works department. 

NEW YORK-BROOKLYN. 

The existing contract for pneumatic mail service in New York and 
Brooklyn is with the New York Pneumatic Service Co. as prin¬ 
cipal and the American Pneumatic Service Co. surety. 

The New York Pneumatic Service Co. appears to have been incor- 
ported in New York on June 29, 1906, and to have succeeded to the 
franchise rights of the Tubular Dispatch Co. and of the New York 
Mail & Newspaper Transportation Co. 


382 


PNEUMATIC-TUBE system. 


TUBULAR DISPATCH CO. 

It appears from the act passed May 9, 1874 (ch. 400, Laws of 
1874, N. Y.), that this company was authorized to lay tubes for the 
transportation of— 

letters, parcels, packages, mails, messages, merchandise, and property under¬ 
ground and beneath the bed of navigable waters in and between the city of 
New York and the villages, towns, and cities in the neighborhood thereof, on 
obtaining the consent of the corporate authorities— 

and the commissioner of public works in the city of New York. 


REPEAL. 


The legislature may at any time alter, amend, or repeal this act. 
It was later amended June 18, 1895, to provide the right to use com¬ 
pressed air, electricity, or any other mechanical method as a motive 
power. 

FRANCHISE PAYMENTS. 

The Tubular Dispatch Co. was required to pay 2 per cent of gross 
earnings to the city of New York, but information has not been re¬ 
ceived as to whether such payments have been paid since 1904. 

DURATION OF FRANCHISE. 

Under section 73 of the charter of Greater Now York (N. Y. Laws 
of 1901, ch. 466) it is provided that— 

no franchise or right to use the streets, avenues, waters, rivers, parkways, or 
highways of the city shall be granted by any board or officer of the city of New 
York under the authority of this act to any person or corporation for a longer 
period than 25 years— 

and it appears that the permits granted to the Tubular Dispatch Co. 
were made in February, June, July, August, and November of 1897, 
that some of these grants of permission were not used, and that the 
corporation counsel advised the commissioner of public works in 
1906 that it would be against public policy to recognize as valid the 
permits which had not been acted upon by the company. 

It further appears that the general permit for the New York 
Mail & Newspaper Transportation Co. was issued on November 10, 
1902. 

The right and duty at all times to exercise in the interest of the 
public full municipal superintendence, regulation, and control, in 
respect to all matters connected with grants to use the public streets 
of the city of New York, are especially reserved to the city by section 
75 of the charter of Greater New York. 

NEW YORK MAIL & NEWSPAPER TRANSPORTATION CO. 

This company obtained similar rights to that of the Tubular Dis¬ 
patch Co. by act of March 21, 1893. (Ch. 184, Laws of 1893, N. Y.) 

SIZE OF TUBES. 

This company is given the right to lay, construct, maintain, and 
operate tubes not to exceed 3 feet in diameter. 


PNEUMATIC-TUBE SYSTEM. 


383 


The company may not open the streets of the city of New York, 
except with the consent of the mayor or the commissioner of public 
works, and except for repairs not greater than four city blocks of 
maximum size. 


PAYMENTS. 

The company is required to pay annually 3 per cent of its gross 
earnings, or $1 for every 100 yards of tubes constructed and operated. 
Information is that it pays under the latter provision, but whether 
such payments have been fully made to date has not been ascertained. 

CONTRACT WITH BROOKLYN BRIDGE. 

The N ew York Mail & Newspaper Transportation Co. appears to 
have a contract with the trustees of the New York and Brooklyn 
Bridge permitting the company to, for a consideration of $1,001 per 
annum, lay its tubes over the Brooklyn Bridge for a period terminat¬ 
ing March 1, 1922. 

Note,— In the record of the investigation of the Pneumatic Tube 
Service, 1901, page 86, Mr. Calef. president of the New York Mail & 
Newspaper Transportation Co., is quoted as follows: 

The charter granted to this company by the legislature of the State and its 
franchises in the city of New York, Boroughs of Manhattan and Brooklyn, as 
well as its lease of the right across the New York and Brooklyn Bridge, do not 
permit us to dispose of the present lease of pneumatic tubes without invalidating 
our rights for the construction of pneumatic tubes for other purposes over the 
same routes; hence by sale of this right we would lose the most valuable portion 
of our franchises and relinquish other rights and privileges. The sale, there¬ 
fore, of our present system to the Government would not be feasible except by 
express authority of law, the purchase of our patent rights for the Borough of 
Brooklyn, and remuneration to the stockholders and bondholders for the value 
of other assets which are taken by the Government or invalidated by the sale 
of the present system. 

The mentioned acts of New York State are here set forth. 

CHICAGO. 

The contract for pneumatic mail service in Chicago is with the 
Chicago Postal Pneumatic Tube Co., an Illinois corporation, a sub¬ 
sidiary of the American Pneumatic Service Co. 


SIZE OF TUBES. 


The license grant of this company is for a maximum size tube, 8 
inches inside diameter. 


USE. 


The use is restricted to carrying United States mails. 

REPAIRING. 

A deposit covering the estimates of cost for repairing and keeping 
in repair the streets for one year which may be opened must be made 
with the commissioner of public works. 


384 


PNEUMATIC-TUBE SYSTEM. 


CHANGING TUBES. 

The commissioner of public works may require tubes to be changed 
on notice, and if a subway should be constructed in Chicago through 
streets in which tubes are operated they should be removed to such 
subway at the expense of the company. 

TERM OF GRANT. 

The grant is for 20 years from October 12, 1903, with the right of 
the city to purchase the plants of the company under a specified 
method of appraisement after October 12, 1913. At the expiration 
of the grant the tubes become the absolute property of the city; 
and at the expiration of the contract with the Government the com¬ 
pany is required to sell its system of pneumatic tubes to an} 7 person 
or corporation who may obtain such contract with the Government. 

PAYMENTS. 


The tube company shall pay to the city of Chicago 3 per cent of 
the gross revenues for the first 4 years of the life of the ordinance 
and 5 per cent of the gross revenues for the remaining 16 years of 
the life of the ordinance. 

Information has not been received as to whether or not these pay¬ 
ments have been made. 

The ordinance of the city of Chicago is set forth below. 

ST. LOUIS. 


The contract in the city of St. Louis is with the St. Louis Pneu¬ 
matic Tube Co. 


TUBES. 


Under the ordinance the company has the right to lay and main¬ 
tain pneumatic tubes in and under certain streets. No limitation is 
in the ordinance as to the size of tubes. 


USE. 


They must be used exclusively for the transmission of the United 
States mail, and a discontinuance or abandonment of such use for a 
period of one year shall work a forfeiture of all the rights, privileges, 
and franchises granted. 

The work of the company is always subject to the supervision and 
control of the board of public improvements, and changes or altera¬ 
tions may be ordered at any time. 


TERM. 

The franchise runs for 25 years, and the company must pay 5 per 
cent of its gross earnings to the city of St. Louis. Information has 
not been received as to whether or not these payments have been made. 
Apparently the franchise will expire June 10," 1928. 

The ordinance of the city of St. Louis is set forth below. 


PNEUMATIC-TUBE SYSTEM. 


385 


PHILADELPHIA. 


The contract for pneumatic service is with the Pneumatic Tran¬ 
sit Co. 


USE, 


Limited to the purpose of transmitting United States mail. Tubes 
shall be laid and constructed in a manner satisfactory to the depart¬ 
ment of public works. 


STREET REPAIRS. 

The company is required to repair and repave and keep in repair 
for three years. 

(The ordinance w T ill be found on p. 114 of this book.) 

The general ordinance respecting the use of the streets of Phila¬ 
delphia and the position of the municipality thereof respecting pneu¬ 
matic-tube construction is set forth below. 

THE ACQUIREMENT OF PATENTS BY THE GOVERNMENT. 

While incapable of exact determination, considerable stress has 
been laid upon the “ value of the patents,” stated as being necessary 
to the successful operation of the pneumatic-tube system for the car¬ 
riage of the mails. This is mentioned in the brief filed on behalf of 
the Pneumatic Service Co. by Mr. Powers, and frequently referred 
to in the hearings. 

It is in the record of the report of 1908, page 115, where the former 
president of this company, Mr. W. E. L. Dilloway, is quoted as stat¬ 
ing emphatically that no claim of monopoly on the part of the Amer¬ 
ican Pneumatic Service Co. of the large tube pneumatic-mail business 
on account of controlling essential patents could be maintained. 

Other engineers representing other systems have given like testi¬ 
mony, and a statement or list of the patents of this company appear 
in the record. 

An examination of these patents, of which there are several hun¬ 
dred in number, discloses a condition which presents serious diffi¬ 
culties to any endeavor to ascertain just what patents, if any, are 
necessary to the operation of the pneumatic mail tube system. 

Lists and memoranda of patents were supplied by the companies, 
to which reference is made. (See pp. 34, 115, and 2il.) 

Prior to 1910 patentees had no standing in court to sue the United 
States Government in the Court of Claims for the use of a patent by 
an officer of the Government for and on behalf of the Government 
unless proof was established that a contract to pay could be implied. 

This situation was quite frequently the cause of injustice to pat¬ 
entees, and Congress, to remedy this situation, on June 25, 1910 (36 
Stat, ch. 423, p. 851), enacted the following law: 

AN ACT To provide additional protection for owners of patents of the United States, and 

for other purposes. 

Be it enacted by the Senate and House of Representatives of the United 
States of America in Congress assembled , That whenever an invention described 
in and covered by a patent of the United States shall hereafter be used by the 
United States without license of the owner thereof or lawful right to use the 


386 


PNEUMATIC-TUBE SYSTEM. 


same, such owner may recover reasonable compensation for such use by suit in 
the Court of Claims: Provided, however, That said Court of Claims shall not 
entertain a suit or award compensation under the provisions of this act where 
the claim for compensation is based on the use by the United States of any 
article heretofore owned, leased, used by, or in the possession of the United States: 
Provided further, That in any such suit the United States may avail itself of 
any and all defenses, general or special, which might be pleaded by a defendant 
in an action for infringement, as set forth in title sixty of the Revised Statutes, 
or otherwise: And provided further, That the benefits of this act shall not inure 
to any patentee, who, when he makes such claim, is in the employment or 
service of the Government of the United States; or the assignee of any such 
patentee; nor shall this act apply to any device discovered or invented by such 
employee during the time of his employment or service. 

A construction of this statute has been given by the Supreme 
Court of the United States in the case of Crozier v. Krupp (224 U. S., 
290), wherein it is stated: 

In substance, therefore, in this case, in view of the public nature of the sub¬ 
jects with which the patents in question are concerned, and the undoubted 
authority of the United States as to such subjects to exercise the power of 
eminent domain, the statute, looking at the substance of things, provides for 
the appropriation of a license to use the inventions, the appropriation thus 
made being sanctioned by a means of compensation for which the statute 
provides. 

And it is further held that it is not necessary that compensation 
should be made previous to the taking, inasmuch as the statute pro¬ 
vides adequate means for a reasonably just and prompt ascertainment 
and payment of the compensation. 

The court was of opinion, and it seems clear, that this statute 
makes full and adequate provision for the exercise of the power of 
eminent domain which was the purpose of the statute to provide in 
respect to the use of patented inventions on the part of the 
Government. 

The decision mentioned was in relation to certain ordnance used 
by the War Department, but it would appear that the same rule 
would of necessity apply to similar use of patented inventions by 
the agents of the Government in respect to any other strictly gov¬ 
ernmental purpose. 

See also United States v. Anciens Etablissements (224 U. S., 309). 

It is not known whether or not any of these devices were “ dis¬ 
covered or invented ” by an employee of the Government “ during the 
time of his employment.” 

Respectfully submitted. 

Nathan B. Williams. 


Boston, February 20, 1918. 

Nathan B. Williams, Esq., 

Attorney Pneumatic Tube Commission, 

United States Senate, Washington, D. C. 

Dear Sir : His honor Jolm F. Fitzgerald, mayor of the city of Boston, has 
requested me to reply to your recent letter concerning the operation and in¬ 
stallation by the United States Government of mail service by pneumatic tubes 
through the streets of this city. 

I am aware of no reason for any change in the attitude toward this subject 
as expressed on pages GT and 74 of the report made in 1908. There has been 
no change in the legislation as contained in that report and there has been 
merely a formal change in the ordinance as there printed by further consoli¬ 
dation of departments, so that the then superintendent of streets is now the 
commissioner of public works. 



PNEUMATIC-TUBE SYSTEM. 


387 


* a copy of the ordinances of the city of Boston passed in the year 

lJlO-11 Of which chapter 9 is the ordinance on this subject as now in force 
lours, truly, 

Joseph J. Corbett, Corporation Counsel. 


FRANCHISE TO BOSTON PNEUMATIC TRANSIT CO. 


In Board of Aldermen : 


City of Boston, November SO, 1896. 


Ordered, That permission be granted to the Boston Pneumatic Transit Co. 
to lay and maintain underground conduits for pipes and tubes, with suitable 
manholes therefor, to be used for the purpose of transmitting United States 
mail, messages, commercial bundles, packages, merchandise, and other articles 
by means of pneumatic power, from place to place, in and under the following- 
named streets of the city, viz: Devonshire Street, from State Street to Franklin 
Street; Franklin Street, from Devonshire Street to Arch Street; Arch Street, 
from Franklin Street to Summer Street; Summer Street, from Arch Street to 
Chauncy Street; Chauncy Street, from Summer Street to Essex Street; Essex 
Street, from Chauncy Street to Washington Street : Washington Street, from 
Essex Street to Boylston Street; Boylston Street, from Washington Street to 
and across Park Square to Providence Street; Providence Street, from Park 
Square to Berkeley Street; Berkeley Street, from Providence Street to St. 
James Avenue: St. James Avenue, from Berkeley Street to Huntington Ave¬ 
nue; Huntington Avenue, from St. James Avenue to Massachusetts Avenue; 
Massachusetts Avenue, from Huntington Avenue to Harvard Bridge; Harvard 
Bridge to the Cambridge line. 

Dartmouth Street, from Huntington Avenue to Tremont Street; Tremont 
Street, from Dartmouth Street to Dedham Street; Dedham Street, from Tre¬ 
mont Street to Washingon Street; Washington Street, from Dedham Street to 
Warren Street ; Warren Street, from Washington Street to Dudley Street. 

Spring Lane, from Devonshire Street to 1 Washington Street; Washington 
Street, from Spring Lane to School Street; School Street, from Washington 
Street to and across Tremont Street to Beacon Street; Beacon Street, from 
School Street to Charles Street; Charles Street, from Beacon Street to and 
across Park Square to Providence Street. 

Dartmouth Street, from Huntington Avenue to Boylston Street; Boylston 
Street, from Dartmouth Street to Massachusetts Avenue. 

Mt. Vernon Street, from Beacon Street to Temple Street; Temple Street, 
from Mt. Vernon Street to and across Cambridge Street to Stamford Street: 
Staniford Street, to and across Merrimac Street to Causeway Street; Causeway 
Street, from Merrimac Street to the Union Passenger Station. 

State Street, from Washington Street to Atlantic Avenue; Atlantic Avenue, 
from State Street to and across Summer Street to Cove Street, as proposed; 
Cove Street, as proposed, from Summer Street to Kneeland Street; Kneeland 
Street, from Cove Street, as proposed, to and across Washington Street to 
Eliot Street; Eliot Street, from Washington Street to and across Park Square 
to Providence Street; Milw Street, from Devonshire Street to Oliver Street; 
Broad Street, from State Street to Atlantic Avenue; Oliver Street, from Milk 
Street to Atlantic Avenue; Pearl Street, from Milk Street to Atlantic Avenue; 
Congress Street, from Milk Street to Congress Street Bridge; Federal Street, 
from Milk Street to and across Summer Street to Cove Street, as proposed; 
Avon Street, from Chauncy Street to Washington Street; Bedford Street, from 
Chauncy Street to Washington Street; Harrison Avenue, from Bedford Street 
to Kneeland Street. 

The work of laying said conduits to be done on or before January 4. 1898, 
at such times and in such manner and places of opening as the superintendent 
of streets shall issue permits for, and in conformity to the statutes and ordi¬ 


nances. 

Passed. Approved by the mayor, December 1, 1896. 
A true copy. 

Attest : 


J. M. Galvin, City Clerk. 



388 


PNEUMATIC-TUBE SYSTEM. 


AMENDMENT TO FRANCHISE TO BOSTON PNEUMATIC TRANSIT CO. 

City of Boston, 
February 18, 1898. 

In Board of Aldermen: 

Ordered , In addition to the rights already granted to the Boston Pneumatic 
Transit Co. to lay and maintain its pipes, permission is hereby further granted 
said corporation to lay and maintain its pipes, with the necessary manholes 
and switches, in the following streets and highways, viz: 

Harrison Avenue, from Kneeland Street to Dudley Street; Dudley Street, 
from Eliot Square to junction of Boston, Hancock, and Stoughton Streets; 
Hancock Street, from Dudley Street to Freeport Street; Freeport Street, from 
Hancock Street to Dorchester Avenue; Stoughton Street, from Dudley Street to 
Pleasant Street; Pleasant Street, from Stoughton Street to Freeport Street; 
Dorchester Avenue, from Broadway to Adams Street; through Eliot Square; 
Roxbury Street, from Eliot Square to Columbus Avenue; Tremont Street, from 
Columbus Avenue to Huntington Avenue; Huntington Avenue, from Massachu¬ 
setts Avenue to boundary line of the town of Brookline; Berkeley Street, from 
Beacon Street to and across Tremont Street; Boylston Street, from Charles 
Street to Dartmouth Street; Dover Street, from Tremont Street to and across 
Dover Street Bridge to West Fourth Street; West Fourth Street, from Dover 
Street Bridge to Dorchester Avenue; West Broadway, from Dorchester Avenue 
to Dorchester Street; Columbus Avenue, from Park Square to Center Street; 
Washington Street, from Dudley Street to Green Street, Jamaica Plain; Green 
Street, from Washington Street to Center Street; Woolsey Square, from Green 
Street to Gordon Street; Center Street, from Green Street to Columbus Avenue; 
Washington Street, from the boundary line of the town of Brookline to Market 
Street; Henshaw Street, from Cambridge Street to Market Street; Wirt 
Street, from Henshaw Street to Washington Street; Market Street, from Hen¬ 
shaw Street to Washington Street; Albany Street, from Swett Street to Broad¬ 
way; Massachusetts Avenue, from Huntington Avenue to Swett Street: Swett 
Street, from Massachusetts Avenue to and across Dorchester Avenue: Dor¬ 
chester Street, from Dorchester Avenue to West Broadway; Zeigler Street, 
from Washington Street to Dearborn Street; Dearborn Street, from Zeigler 
Street to Dudley Street; Cambridge Street, from Charles Street to Bowdoin 
Square; Charles Street, from Beacon Street to Cambridge Street: Beacon 
Street, from Charles Street to St. Marys Street; Prentiss Street, from Tremont 
Street to Parker Street; Station Street, from Tremont Street to Parker Street; 
Parker Street, from Tremont Street to Prentiss Street; Conant Street, from 
Parker Street to Huntington Avenue; Dedham Street, from Harrison Avenue 
to Washington Street; Brookline Street, from Harrison Avenue to Washington 
Street; Warren Street, from Dudley Street to and across Blue Hill Avenue to 
Washington Street; Washington Street, from Blue Hill Avenue to boundary 
line of the town of Milton; Commonwealth Avenue, from Beacon Street to 
boundary line of the city of Newton; Causeway Street, from Nashua Street to 
and across proposed bridge to City Square, Charlestown; Main Street, from 
City Square to boundary line of city of Somerville. 

And the superintendent of streets is hereby directed to issue permits to said 
company to open and occupy such portions of said streets as may be necessary 
to lay its pipes in said streets from time to time as it may require them in 
compliance with this order. 

Passed. Approved by the mayor, February 28, ISOS. 

A true copy. 

Attpst * 

J. M. Galvin, City Clerk. 


CHARTER FROM THE STATE OF NEW Y'ORIv TO THE TUBULAR DISPATCH CO. 

(Chap. 400, Laws of 1874.) 

AN ACT To provide for the transmission of letters, parcels, packages, mails, messages, 
merchandise, and property between the city of New York and the villages, towns, and 
cities in the vicinity thereof (passed May 9, 1874). 

The people of the State of New York, represented in senate and assembly, do 
enact as folloivs: 

Section I. L. W. Emerson, II. Tracy Arnold, T. L. Ilarison, C. H. Scrysmer, 
I. M. Strong, John R. Lawrence, and their assigns, and such persons as they 



PNEUMATIC-TUBE SYSTEM. 


389 


may associate with them, are hereby authorized and empowered to lay down, . 
construct, and maintain tubes of iron, wood, or other material underground 
and beneath the bed of navigable waters in and between the city of New York 
and the villages, towns, and cities in the neighborhood thereof, at such depths 
below the bed of such waters as not to interfere with the channels, anchorage, 
or navigation thereof, and for the purpose of such construction underground 
shall have the right to open any street or avenue in any incorporated town or 
city, by and with the consent of the corporate authorities of such town or city, 
excepting in the city of New York, where such consent shall be obtained from 
the commissoner of public works, and to convey letters, parcels, packages, mails, 
messages, merchandise, and property in and through said tubes, for compen¬ 
sation, by means of the pneumatic method of propulsion. 

Sec. 2. Any person who shall willfully destroy or injure any of said tubes or 
any of the articles deposited therein shall be deemed guilty of a misdemeanor, 
and on conviction thereof shall be punished by a fine of not less than one hun¬ 
dred dollars nor more than five hundred dollars, or by imprisonment not less 
than three nor more than six months, or by both, and shall also forfeit and pay 
to the said persons or their assigns three times the amount of damages they 
may sustain by such damage, to be recovered with costs in any court having 
jurisdiction. 

Sec. 3. In case said persons shall so determine they may organize themselves 
into an association in the manner required and authorized in and by the act enti¬ 
tled “An act to authorize the formation of corpoations for manufacturing, mining, 
mechanical, or chemical purposes,” passed on the seventeenth day of February, 
eighteen hundred and forty-eight, and the amendments thereto, for the pur¬ 
poses stated in section one of this act. The certificate to be executed for the 
purpose of forming such corporation may be signed and acknowledged by any 
three or more of said grantees, and upon the formation thereof said corporation 
shall possess all the powers and privileges conferred by said act, and be sub¬ 
ject to all the duties and obligations imposed therein not inconsistent with the 
provisions of this act. 

Sec. 4. The legislature may at any time alter, amend, or repeal this act. and 
all acts or parts of acts inconsistent with this act are hereby repealed. 

(Chap. 977, Laws of 1895.) 

AN ACT Supplementary to chapter four hundred of the laws of eighteen hundred and 
seventy-four entitled "“An act to provide for the transmission of letters, parcels, pack¬ 
ages, mails, messages, merchandise, and property between the city of New York and the 
villages, towns, and cilies in the vicinity thereof.” 

Became a law June 7, 1895, with the approval of the governor. Passed, three- 
fifths being present. 

The people of the State of New York, represented in Senate and Assembly, do 
enact as follows: 

Section 1. In addition to the powers, rights, and privileges granted by chap¬ 
ter four hundred of the laws of eighteen hundred and seventy-four, entitled 
“An act to provide for the transmission of letters, parcels, packages, mails, 
messages, merchandise, and property between the city of New York and the 
villages, towns, and cities in the vicinity thereof,” the company incorporated 
under the provisions of said act, known as the Tubular Dispatch Company, 
shall have the right to use, in addition to compressed air, electricity or any 
other mechanical method as a motive power. 

This act shall take effect immediately. 


CHARTER FROM THE STATE OF NEW YORK TO THE NEW YORK MAIL & NEWSPAPER 

TRANSPORTATION CO. 

(Chap. 164, Laws of 1893.) 

AN ACT To incorporate the New York Mail and Newspaper Transportation Company. 

Approved by the governor March 21, 1893. Passed, three-fifths being present. 

The people of the State of New York, represented in Senate and Assembly, do 
enact as follows: 

Section 1. James S. Metcalfe, Lucien T. Chapman, Warren W. Foster, Wil¬ 
liam O Inglis Augustus P. Smith, and their associates, successors, and assigns, 



390 


PNEUMATIC-TUBE SYSTEM. 


are hereby created a body corporate and politic by the name of the New York 
Mail and Newpaper Tranportation Company, and by that name shall have per¬ 
petual succession and may sue and be sued in any court. The general purpose 
of such corporation shall be, and it is hereby authorized and empowered, to 
construct, maintain, and operate pneumatic tubes and other devices for the 
speedy transmission and delivery of the mails, newspapers, and parcels within 
and between the cities of this State, and to do the general business of delivery 
and transmitting the mails, newspapers, and parcels within and between the 
cities of this State, and to malce such charges therefor as it may agree by public 
or private contract. 

2. The capital stock of said corporation shall be one hundred thousand dollars 
abided into one thousand shares of one hundred dollars each, and may at any 
time be increased or diminished by a majority vote of the board of directors 
with the consent in writing of the stockholders holding a majority of the stock 
then issued and outstanding. The shares shall be transferred in such manner 
as shall be prescribed by the by-laws of said corporation. Said corporation 
may borrow money, incur debts and liabilities, and issue its bonds or obligations 
therefor in such manner, of what nature, to such amount, at such rates, and 
on such terms as its board of directors may from time to time by a majority 
vote direct. The board of directors may secure the payment of the same by 
mortgaging any part of its real or personal estate, with or without its fran¬ 
chises. 

3. The stock, property, and affairs of such corporation shall be managed by a 
board of directors. The persons named in the first section of this act shall con¬ 
stitute the first board of directors of said corporation, and shall hold their place 
as such until the second Monday of May, eighteen hundred and ninety-three, 
and until others shall be elected in their stead. The said persons, or a majority 
of them, shall meet and organize as such board of directors within ninety days 
after the passage of this act and adopt by-laws for the regulation of said corpo¬ 
ration not inconsistent with this act or with the laws of this State, and said 
by-laws may be altered, amended, or repealed at any time by a vote of the 
holders of a majority of the stock, represented in person or by proxy, at any 
meeting of the stockholders duly called or by a majority vote of the board of 
directors. On or after the second Monday of May, eighteen hundred and ninety- 
three, the board of directors of said corporation shall be elected annually at a 
meeting of the stockholders thereof to be held at such time and place and on 
such notice as the corporation by its by-laws may designate or appoint. The 
number of directors after that time shall not be less than three nor more than 
fifteen, as may be provided by the by-laws to be adopted by said corporation. 
All vacancies happening in such board shall be filled as may be provided in said 
by-laws. The officers of the corporation shall be such as the board of directors 
shall direct, and shall be annually elected by the board of directors. 

4. Said corporation may issue a portion of its original or increased capital 
stock, not exceeding one-third part thereof, as preferred stock; such preferred 
stock to entitle the holder thereof to a cumulative preferential dividend out of 
the surplus earnings, not exceeding eight per centum per annum, but without 
any other preferential right. The amount of preferred stock to be issued from 
time to time, within the limits above fixed and the manner of issuing the same, 
may be determined and directed by the board of directors of said corporation. 
Each share of stock, whether preferred or common, shall entitle the holder 
thereof to one vote at all meetings of stockholders and at all elections of the 
company. The capital stock of said corporation may be issued or caused to be 
issued by its directors for money, material, labor, services, or other property 
actually received for the use and lawful purposes of such corporation, at its fair 
value, subject to such restrictions as may be provided by the by-laws of said 
company. 

5. The said corporation is hereby empowered, without other or f urther author¬ 
ity of law or ordinance, to do any or all of the following: To locate, to construct, 
to maintain, and to operate tubes, not to exceed three feet in diameter, between 
the central post offices and the branch post offices, and newspaper offices and 
postal stations in said cities of this State, by such route or routes as shall be 
determined by said corporation, and to transmit and to supply power along any 
or all of its route or routes and to make connections with and between said 
post offices and buildings in which newspapers are published and other build¬ 
ings, railways, ferries, and postal stations within and between the cities of this 
State, and to convey and transport and to deliver the United States mails, news¬ 
papers, and parcels; and such corporation shall have the light, and it is hereby 


PNEUMATIC-TUBE SYSTEM. 


391 


empowered, to enter upon and take possession of such real property or such 
light, title, interest, or easement therein as may he necessary or convenient to 
accomplish the purposes for which this charter is given or in the exercise of the 
powers herein conferred, which are hereby expressly declared to he a public 
purpose and their use by said corporation a public use. All such real property, 
or right, title, interest, or easement therein, shall be purchased of the owner or 
oioncrs at a price to be mutually agreed upon, or the said corporation shall have 
the right to acquire the same by condemnation proceedings, as provided by chap¬ 
ter twenty-three, title one, of the code of civil procedure of the State of New 
York, and acts amendatory thereof or in addition thereto. 

6. The said corporation shall pay annually into the treasury of the cities of 
New York and Brooklyn, on or before October first, in equal parts, share and 
shaie alike, a sum equal to three per centum of its gross earnings in said cities 

01 the preceding calendar year, or a sum equal to one dollar for every hundred 
yards of tubes constructed and operated by it in said cities. 

7. Nothing in this act shall be construed to permit such corporation to do a 
passenger business or to operate a railway or to place or allow to be placed in 
said tubes, ot any of them, any conductor for the transmission of electric cur¬ 
rents, except for use as a motive power to operate said tubes, and when not in 
W operation to transmit and supply the resulting surplus motive power along 
such route or routes. No such electrical current shall be used for lighting or 
signaling purposes. Nothing in this act shall be construed to authorize said 
corporation to open the streets of the city of New York for the purpose of laying 
pneumatic tubes except with the consent of the mayor or the commissioner of 
public works of the city of New York, but such consent shall not be necessary 
for repairs or for connections not to exceed in the length of any connection a 
distance greater than the length of four city blocks of maximum size. 

8. This act shall take effect immediately. 


FRANCHISE TO CHICAGO POSTAL PNEUMATIC TUBE CO. 

(Granted July 13, 1903.) 

AN ORDINANCE Granting to the Chicago Postal Pneumatic Tube Co. certain rights and 
privileges in regard to pneumatic tubes in the city of Chicago. 

Be it ordained by the City Council of the City of Chicago: 

GRANT. 

Section 1. Subject to the terms and conditions of this ordinance there is 
hereby granted to the Chicago Postal Pneumatic Tube Co., a corporation duly 
organized and existing under the laws of the State if Illinois, permission and 
authority to construct, lay, place, maintain, and operate pneumatic tubes, not to 
exceed two tubes for each route, from place to place, the maximum size of such 
tubes to be eight (8) inches inside diameter, occupying in cross section, including 
switches, turnouts, and connections, approximately two hundred and seventy- 
five (275) square inches, with all suitable switches, turnouts, and connections 
with such electrical or other connections as are absolutely necessary for the 
operation of said switches, turnouts, and connections in, through, upon, and 
under the streets, avenues, alleys, public ways, tunnels, bridges, viaducts, and 
under the Chicago River and its various branches, within the city of Chicago, 
said electrical connections not to exceed four wires from the central post-office 
station to each switch; the rights and privileges granted under this ordinance 
are upon the express condition that said pneumatic tubes are to be laid on only 
such streets, avenues, alleys, public ways, tunnels, upon viaducts, and under the 
Chicago River and its various branches at such points within the city of Chi¬ 
cago as may be necessary to connect the temporary and main post-office buildings 
in said city with branch post offices, subpostal stations and steam railway sta¬ 
tions; said tubes to be constructed of cast iron, steel, or brass capable of with¬ 
standing a pressure of one hundred (100) pounds per square inch, the maximum 
working pressure not to exceed twenty (20) pounds per square inch. 

Before any permit shall be issued to open any street, alley, or public way for 
the installation of tubes under this ordinance a map or plat of the route adopted 
and streets or alleys to be occupied shall be presented to the city council for its 
approval, and no permit shall be issued until such plat or plats or map or maps 
shall be approved by the city council. 



392 


PNEUMATIC-TUBE SYSTEM. 


USE. 

Section 2. Said pneumatic tubes with all switches, turnouts, and connections 
shall be used for the transmission by compressed air, or such other power as 
may be hereafter authorized, of United States mail only, and for no other 
purpose whatever, and this grant shall become null and void if said pneumatic 
tubes be ever used for any other purpose than carrying United States mails. 

UNDERGROUND PLANS. 

Section 3. All such lines of pneumatic tubes shall be placed under ground, 
except those which must necessarily pass through, over, upon, or under tunnels, 
railroads, elevated railroads, bridges, or viaducts. Such company shall at all 
times place and keep on tile with the commissioner of public works plans 
showing the location of each pneumatic tube, switch, turnout, and connection, 
and upon laying any pnematic tubes said company shall file with the commis¬ 
sioner of public works a plan showing where each of the same is laid, the 
location of manholes or other openings to gain access thereto, and each cover 
of said openings shall have placed thereon the name of said company. Said 
pneumatic tubes, branches, connections, switches, and other parts shall be laid 
and constructed along the route as shown on the map or plat approved by the 
city council, as hereinbefore provided, and in accordance with the plans ap¬ 
proved by the commissioner of public works, as hereinbefore provided, and said 
work shall be done to the satisfaction of the commissioner of public works: 
Provided, however, That when said company shall lay its line or lines of pipes 
or tubes, or any part thereof, below the surface of the ground or through a 
tunnel, the same shall be laid in such part of the street, avenue, alley, tunnel, 
or other public highway as the commissioner of public works shall direct, and 
without doing permanent injury to any street, avenue, alley, sidewalk, tunnel, 
or other public place, or in a manner to unnecessarily disturb or interfere with 
any water pipe, gas pipe, sewer, conduit, subway, or other underground work 
laid by the said city or any authorized company or corporation. And if, in the 
opinion of the commissioner of public works, it becomes necessary for the 
grantee herein to change or remove any water pipe, gas pipe, sewer, conduit, 
subway, or other underground work laid by the said city or any authorized 
company or corporation, the said grantee shall change or remove any such 
underground work entirely at its own expense. Whenever said line or lines of 
pipes cross any street at an angle, said street shall be repaved or restored by 
the said company at such width and in such manner as shall be directed by the 
commissioner of public works, and the material shall be the same as the 
material of the remaining portion of the street, avenue, or alley in the same 
block, all such paving to be done at the expense of the said company in a first- 
class manner, and to the satisfaction of the commissioner of public works. 

TIME FOR LAYING TUBES. * 

Section 4. The work of laying said pneumatic tubes and other appliances 
connected therewith herein authorized shall be begun within six (6) months 
after the passage of this ordinance, and at least eight (8) miles of double tubes 
shall be constructed and completed within one year from said passage, and any 
work for which a permit may be granted under this ordinance at any time 
hereafter must be completed within one (1) year from the issuance of said 
permit: Provided, That if the said company shall be restrained or prevented 
from proceeding with the work in laying said tubes, branches, connections, and 
other appliances connected therewith by order or writ of any court of compe¬ 
tent jurisdiction or by the action of the city of Chicago or its duly constituted 
authorities, the time which said -company shall be so delayed shall be added to 
the time herein prescribed for the completion of said work. The city of Chi¬ 
cago, however, shall have, and it hereby expressly reserves, the right to inter¬ 
vene in any suit or proceeding brought by any person or persons seeking to 
enjoin, restrain, or in any manner interfere with the prosecution of said con¬ 
struction and in the name of said company move for a dissolution of such injunc¬ 
tion or restraining order and for any proper order in such suit in case it shall 
deem such suit collusive or brought for the purpose of delay or for the purpose 
of extending the time herein prescribed for the completion of the laying of said 
pneumatic tubes. 


PNEUMATIC-TUBE SYSTEM. 


393 


INJURY TO STREETS. 

Section 5. Said company shall not open, disturb, or encumber more of any 
street, avenue, alley, or public place at any time than shall be necessary to 
enable it to proceed with advantage in the laying in any street, avenue, alley, 
or public place of its said pipes or tubes, nor shall said company permit any 
such street, avenue, alley, or public place to remain open or encumbered for a 
longer period than shall be necessary to execute the work for which the same 
shall have been opened or encumbered and without putting up the necessary 
barriers and lights so as to effectually prevent the happening of any accident in 
consequence of such opening or encumbering of such street, avenue, alley, or 
public place. 

* 

REPAIRING STREETS. 

Section 6 . Whenever said corporation shall repair any street, avenue, alley, 
or public highway it shall put down pavement of such material and quality, 
and such material shall be the same as the remaining portion of the street, 
avenue, alley, or public highway in the same block is constructed of and in 
which said opening is made and in such manner as existed before said street 
was disturbed. Before a permit shall be granted to said company to open 
ground in any street, sidewalk, alley, avenue, or public place for any purpose 
an estimate of the cost of the necessary repairing of said street, sidewalk, alley, 
avenue, or public place, with a fair additional sum as margin for contingent 
cost, shall be made by the commissioner of public works, and the said applicant 
corporation shall deposit the amount so ascertained with the city comptroller, 
and the permit shall issue to said company only upon the presentation of the 
comptroller’s receipt for the same to the commissioner of public works; such 
deposit shall remain with the city comptroller for the period of one year, at 
which time, upon the presentation of a certificate from the commissioner of 
public works certifying to the satisfactory condition of such restored pavement, 
said deposit shall be returned to said corporation, and no work of any kind 
shall be done by said company without a permit from the commissioner of pub¬ 
lic works. No excavation in any street, avenue, alley, or other public place 
shall be made without first procuring a permit for that purpose from the com¬ 
missioner of public works of the said city of Chicago. 

changing or removing tubes. 

Section 7. The said company shall, on notice from the commissioner of public 
works, remove or change any of its pipes or tubes which may be in the way of 
or interfere with the construction or location of any viaduct, public building, or 
other public structure or any public or private undertaking or shall interfere 
with the lowering of the tunnels under the Chicago River. 

SUBWAY. 

Section 8 . Whenever the said city of Chicago or the State of Illinois or any 
person or corporation acting under a franchise from the city of Chicago, in and 
by which franchise the city of Chicago shall retain and control the right to fix 
the rentals and conditions for the use of a subway, shall construct or form, or 
cause to be constructed or formed, into a general subway any street, avenue, 
alley, or place, or any part or parts thereof, on or through which any such 
pneumatic tubes authorized by this ordinance shall be located, the said com¬ 
pany, on due notice from the mayor or commissioner of public works, shall remove 
into and occupy said subway, change and maintain its said pipes, tubes, or 
other appurtenances therein at its own expense, and said company shall comply 
in every respect with all the laws and ordinances that shall be passed concern¬ 
ing rentals for space in said subway and the general occupancy thereof, and 
shall pay such rental as shall be provided by said ordinance. 

term of grant—right of purchase. 

Section 9. The rights and privileges hereby conferred upon said company 
are granted for the term of twenty (20) years from and after the acceptance of 
this ordinance. Such rights and privileges are hereby granted on the express 
condition that at any time after the end of ten (10) years from and after the 


78419—13-26 



394 


PNEUMATIC-TUBE SYSTEM. 


acceptance of this ordinance the city of Chicago shall have the right to pur¬ 
chase the entire plant or plants of said company and all its property and effects 
of every kind or nature within said city of Chicago, either by mutual agreement 
or at an appraised value, which appraised value shall be ascertained and deter¬ 
mined by three competent and disinterested appraisers, who shall have full 
access to all books, papers, and other documents of said company bearing on or 
appertaining to the subject, and such appraisers shall be selected in the follow¬ 
ing manner, to wit: One of said appraisers shall be appointed by the city of 
Chicago, one by said company, and the two so selected shall choose a third, and 
if said two appraisers can not agree upon a third, then said third appraiser 
shall by petition of either party in interest be selected by the chief justice of 
the circuit court of Cook County, and the said three appraisers, when so.chosen, 
shall within six months after the appointment of the last appraiser make report 
in writing to the said city of Chicago of the value of the said property. The 
value of this license or grant is not to be taken into account or considered of 
any value as against the city of Chicago, and the said city of Chicago shall 
have the option at any time within one year after the receipt of said report to 
purchase said plant or plants and property, together with all its appurtenances 
and equipment, at the aforesaid value so fixed by said appraisers: Provided , 
however, That if said city shall so elect to purchase said plant or plants and 
property, then said company shall have the right to operate said plant or plants 
and property and receive the profits therefrom during the time said arbitration 
is in progress and until the same shall be completed and the purchase price, as 
fixed by the arbitrators, has been paid. 

In the event of the grantee hereunder not receiving the mail-carrying contract 
from the United States Government at the expiration of any of its contracts 
with the United States Government, then, and in that event, the city of Chicago 
shall have the right, and the right is hereby expressly reserved, to require the 
grantee hereunder to sell to any person, firm, or corporation which shall receive 
from the United States Government the contract for carrying mails in the city 
of Chicago by pneumatic tubes, all its plant which may occupy the public streets, 
alleys, or other public grounds on the same terms and in the same manner as 
is herein provided for its purchase by said city; and the value of this license or 
grant is not to be taken into account or considered of any value as against such 
person, firm, or corporation receiving said contract. 

At the expiration of this grant all the tubes of this grantee then in the 
streets, alleys, or other public grounds shall be and become the absolute property 
of the city of Chicago, and this grantee hereby, and in consideration of these 
presents, agrees to convey the said tubes free of all liens or incumbrances, by 
proper deed of conveyance, to the city of Chicago or to any person, firm, or cor¬ 
poration that may be selected by said city of Chicago. 

BOND. 

Section 10. On the acceptance of this ordinance the grantee shall deposit 
with the city treasurer the sum of fifty thousand dollars ($50,000) in cash, or 
negotiable securities in the sum of $50,000 to be approved by the comptroller of 
the city of Chicago, which deposit is for the purpose of guaranteeing the com¬ 
pletion of the first eight miles of pneumatic tubes within one year from the 
passage of this ordinance, as provided for in section 4 hereof, and if the afore¬ 
said provision is complied with then said deposit is to be returned to the grantee; 
otherwise this money shall be forfeited to the city of Chicago and all the rights 
and privileges granted hereby shall become null and void. The company shall 
also file with the city of Chicago a good and sufficient bond, with sureties to be 
approved by the mayor, in the penal sum of fifty thousand dollars ($50,000), 
conditioned that said company shall comply with all the terms and conditions 
of this ordinance, and shall indemnify and save harmless the city of Chicago 
against and from any and all liability, damages, decrees, and costs" of whatever 
kind or nature by reason of the passage of this ordinance, and the exercise of 
any rights and privileges hereby or herein granted. Whenever, in the opinion 
of the proper officers of said city of Chicago, the said bond may have been 
impaired by reason of change in the financial condition of the sureties upon the 
same, the said city of Chicago may require said company within a reasonable 
time to furnish another bond conditioned in the same manner with such sureties 
as may be approved by the mayor of said city of Chicago, and in case of failure 
of said company to furnish said bond after due notice all the rights of such 
company under this ordinance shall cease and the same shall be void. 


PNEUMATIC-TUBE SYSTEM. 


395 


PAYMENTS. 

Section 11. The rights and privileges hereby granted are upon the express 
condition that the Chicago Postal Pneumatic Tube Company shall pay annually 
to said city of Chicago for and in consideration of the rights and privileges 
hereby granted an amount equal to three (3) per cent per annum of the gross 
revenues and receipts of said company for the first four (4) years of the life 
of this ordinance, and a sum equal to five (5) per cent per annum of the gross 
revenues and receipts of said company for the remaining sixteen (16) years of 
the life of this ordinance. And in addition to said payments the grantee herein 
shall at the time it constructs its pipe line between Harrison Street on the 
north and the subpostal station at or near the stockyards on the south, place 
in the same trench with the pneumatic tubes between said points two (2) 
vitrified clay conduits three (3) inches in diameter, said conduits to be installed 
without expense to the city of Chicago and shall become and be the sole property 
of said city for its sole use. Such payments shall be made in the manner 
following: At the expiration of one year from the time said company shall com¬ 
mence to distribute mail in the city of Chicago the president or other chief 
officers of the said company shall file with the comptroller of the city of 
Chicago a detailed statement under oath showing the amount of gross annual 
revenue or receipts of said company for the preceding year, and shall at the 
same time pay to said comptroller the percentage of the annual gross revenues 
and receipts of said company as hereinabove provided, said respective pay¬ 
ments to be made as herein described annually. Such statement, however, shall 
not l>e final or binding upon the city, and the comptroller of the city of Chicago 
or his authorized agent shall at all times, to verify such statement, have the 
right to examine the books, contracts, and papers of the said company showing 
the gross receipts of the said company. 

WHEN IN FORCE. 

Section 12. This ordinance shall take effect and be in force from and after its 
passage and the filing of the bond herein required and the acceptance in writing 
of this ordinance by the said company: Provided , That if the said bond and the 
said acceptance be not filed with the city clerk within ninety (90) days after 
the passage and approval hereof, this ordinance shall be void and of no effect. 

State of Illinois, County of Cook, ss: 

I, Fred C. Bender, city clerk of the city of Chicago, do hereby certify that 
the foregoing is a true and correct copy of a certain ordinance granting certain 
privileges to the Chicago Postal Pneumatic Tube Co., now on file at my office, 
which ordinance was passed by the city council of the citiy of Chicago, aforesaid, 
on the 13th day of July, A. D. 1903, and deposited in my office on the 13th day of 
July, A. D. 1903. 

I do further certify that the said ordinance was delivered to the mayor of 
said city, after the passage of said ordinance by the city council, without delay, 
by the city clerk of said city; and that the said mayor failed to return the 
same to the said council at its next regular meeting, occurring more than five 
days after the passage of said ordinance, with his objections thereto, whereupon 
the said ordinance took effect in like manner as if he had approved the same. 

I do further certify that the original, of which the foregoing is a true copy, 
is entrusted to my care for safekeeping, and that I am the keeper of the same. 

In witness whereof I have hereunto set my hand and affixed the corporate 
seal of the city aforesaid, at the said city, in the county and State aforesaid, 
this 21st day of July, A. D. 1903. 

[seal.] Fred C. Bender, City Clerk. 


AMENDMENT TO FRANCHISE TO CHICAGO POSTAL PNEUMATIC TUDE CO. (GRANTED 

JUNE 1, 1000). 


\N ORDINANCE Amending sections 1, 4, and 0 of an ordinance granting to the Chicago 
Postal Pneumatic Tube Co. certain rights and privileges in regard to pneumatic tubes 
in the city of Chicago. 


Be it ordained by the City Council of the City of Chicago: 

Section I. That sections I. 4, and 9 of an ordinance granting to the Chicago 
Postal Pneumatic Tube Company certain rights and privileges in regard to 



396 


PNEUMATIC-TUBE SYSTEM. 


pneumatic tubes in tlie city of Chicago, passed July 13, 1903, be, and the same 
are hereby, amended so as to read, respectively, as follows: 

Section 1 . Subject to the terms and conditions of this ordinance, there is 
hereby granted to the Chicago Postal Pneumatic Tube Company, a corporation 
duly organized and existing under the laws of the State of Illinois, permission 
and authority to construct, lay, place, maintain, and operate pneumatic tubes, 
not to exceed two tubes for each route from place to place, the maximum size 
of such tubes to be eight (8) inches inside diameter occupying in cross section, 
including switches, turn-outs, and connections, approximately two hundred and 
seventy-five (275) square inches, with all suitable switches, turn-outs, and con¬ 
nections, with such electrical or other connections as are absolutely necessary 
for the operation of said switches, turn-outs, and connections in, through, upon, 
and under the streets, avenues, alleys, public ways, tunnels, bridges, viaducts, 
and under the Chicago River and its various branches within the city of Chi¬ 
cago, said electric connections not to exceed four wires from the central post- 
office station to each switch; the rights and privileges granted under this ordi¬ 
nance are upon the express condition that said pneumatic tubes are to be laid 
on only such streets, avenues, alleys, public ways, tunnels, upon viaducts, 
and under the Chicago River and its various branches at such points within the 
city of Chicago as may be necessary to connect the temporary and main post- 
office buildings in said city with branch post offices, subpostal stations, and 
steam railway stations, said tubes to be constructed of cast iron, steel, or brass, 
capable of withstanding a pressure of one hundred (100) pounds per square 
inch, the maximum working pressure not to exceed twenty (20) pounds per 
square inch; and said company is further authorized to construct, maintain, 
and operate but. excepting as hereinafter provided, subject to the provisions of 
its ordinance of July 13, 1903, under the Chicago River a tunnel having a 
cross section not greater than five (5) feet inside diameter and whose crown 
shall not be less than thirty-six (36) feet below city datum along the following- 
described route, to wit: 

Beginning about the north line of South Water Street at a point about twenty 
(20) feet east of the west line of Fifth Avenue, running thence north sixteen 
(16) degrees west for a distance of about ninety-seven (97) feet to a point 
forty-six (46) feet and three (3) inches west of the center line of Fifth Avenue 
or Wells Street; thence north on a line parallel with and about forty-six (46) 
feet three (3) inches west of the center line of Fifth Avenue or Wells Street 
about two hundred and ten (210) feet; thence north about eleven (11) degrees 
and fifteen (15) minutes, east about one hundred, thirty-seven and five-hun¬ 
dredths (137.05) feet to a point about twenty (20) feet east of the west line of 
Fifth Avenue or Wells Street; thence north on a line parallel with the center 
line of Fifth Avenue or Wells Street and about twenty (20) feet east of the 
west line of Fifth Avenue or Wells Street about one hundred and fifty-two (152) 
feet, as shown on the blue print attached hereto, which for greater certainty is 
hereby made a part of this ordinance; such tunnel to be constructed according 
to the plans and specifications approved by the commissioner of public works. 

Before any permit shall be issued to open any street, alley, or public way for 
the installation of tubes under this ordinance a map or plat of the route adopted 
and streets or alleys to be occupied shall be presented to the city council for its 
approval, and no permit shall be issued until such plat or plats or map or maps 
shall be approved by the city council. 

Sec. 4. The work of laying said pneumatic tubes and other appliances con¬ 
nected therewith, herein authorized, shall be begun within six (6) months 
after the passage of this ordinance, and at least eight (8) miles of double tubes 
shall be constructed and completed within one year from said passage, and any 
work for which a permit may be granted under this ordinance at any time 
hereafter must be completed within one (1) year from the issuance of said 
Permit (excepting the work herein .authorized by this amendatory ordinance in 
favor of the grantee herein, which said work shall be begun within forty (40) 
days after the passage of said amendatory ordinance and must be completed 
within one hundred twenty (120) days from the issuance of the permit there¬ 
for) ; provided, that if the said company shall be restrained or prevented from 
proceeding with the work in laying said tubes, branches, connections, and other 
appliances connected therewith, or the construction of said tunnel, by order or 
writ of any court of competent jurisdiction, or by the action of the city of 
Chicago or its duly constituted authorities, the time which said company shall 


PNEUMATIC-TUBE SYSTEM. 


397 


be so delayed shall be added to the time herein prescribed for the completion of 
said work. The city of Chicago, however, shall have, and it hereby expressly 
reserves, the right to intervene in any snit or proceeding brought by any 
person or persons seeking to enjoin, restrain, or in any manner interfere with 
the prosecution of said construction and in the name of said company move for 
a dissolution of such injunction or restraining order and for any proper order 
in such suit in case it shall deem such suit collusive or brought for the purpose 
of delay or for the purpose of extending the time herein prescribed for the 
completion of said pneumatic tubes or construction of said tunnel. 

Sec. 9. The rights and privileges hereby conferred shall cease and determine 
October 13. 1923. Such rights and privileges are hereby granted on the 
express condition that at any time after October 13, 1913, the city of Chicago 
shall have the right to purchase the entire plant or plants of said company 
and all its property and effects of every kind and nature within said city of 
Chicago, either by mutual agreement or at an appraised value, which appraised 
value shall be ascertained and determined by three competent and disinterested 
appraisers, who shall have full access to all books, papers, and other docu¬ 
ments of said company bearing on or appertaining to the subject, and such 
appraisers shall be selected in the following manner, to wit: One of said 
appraisers shall be appointed by the city of Chicago, one by said company, 
and the two so selected shall choose a third, and if said two appraisers can 
not agree upon a third, then said third appraiser shall by petition of either 
party in interest, be selected by the chief justice of the circuit court of Cook 
County, and the three appraisers, when so chosen, shall within six months 
after the appointment of the last appraiser make report in writing to the said 
city of Chicago of the value of the said property; the value of this license or 
grant is not to be taken into account or considered of any value as against 
the city of Chicago, and the said city of Chicago shall have the option at 
any time within one year after the receipt of said report to purchase said 
plant or plants and property, together with all its appurtenances and equipment 
at the aforesaid value so fixed by said appraisers: Provided , however, That 
if said city shall so elect to purchase said plant or plants and property, then 
said company shall have the right to operate said plant or plants and property 
and receive the profits therefrom during the time said arbitration is in progress 
and until the same shall be completed and the purchase price, as fixed by the 
arbitrators, has been paid. 

In the event of the grantee hereunder not receiving the mail-carrying contract 
from the United States Government at the expiration of any of its contracts 
with the United States Government, then, and in that event, the city of Chicago 
shall have the right, and the right is hereby expressly reserved, to require the 
grantee hereunder to sell to any person, firm, or corporation which shall receive 
from the United States Government the contract for carrying mails in the city 
of Chicago by pneumatic tubes, all its plant which may occupy the public streets, 
alleys or other public grounds, together with said tunnel (and tubes or con¬ 
duits located therein) constructed and maintained or operated under the Chicago 
River, on the same terms .and in the same manner as is herein provided for its 
purchase by said city, and the value of this license or grant is not to be taken 
into account or considered of any value as against such person, firm, or corpo¬ 
ration receiving said contract. 

At the expiration of this grant all the tubes of this grantee then in the 
streets, alleys, or other public grounds, together with said tunnel (and tubes 
or conduits located therein) constructed or maintained or operated under the 
Chicago River shall be and become the absolute property of the city of Chicago, 
and this grantee hereby and in consideration of these presents agrees to convey 
the said tubes and tunnel (and tubes and conduits located therein) free of 
all liens or incumbrances by proper deed of conveyance to the city of Chicago, 
or to any person, firm, or corporation that may be selected by said city of 
Chicago. 

Sec. 2. This ordinance shall be in full force from and after its acceptance 
by the said Chicago Postal Pneumatic Tube Company, and the filing of the con¬ 
sent of the surety or sureties upon the bond of said Chicago Postal Pneumatic 
Tube Company, which acceptance and consent shall be filed with the city clerk 
of the city of Chicago within thirty (30) days from the passage hereof: Pro¬ 
vided, however. That in the event that such acceptance and consent is not filed 
within thirty (30) days, then all the rights and privileges hereby granted shall 
be held void and of no effect. 


398 


PNEUMATIC-TUBE SYSTEM. 


State of Illinois, County of Cool:, ss: 

I, Francis D. Connery, city clerk of the city of Chicago, do hereby certify that 
the foregoing is a true and correct copy of a certain ordinance amending an 
ordinance passed July 13, 1903, granting certain rights and privileges to the 
Chicago Postal Pneumatic Tube Co., now on file at my office, which ordinance 
was passed by the city council of the city of Chicago aforesaid, on the 1st day 
of June, A. D. 1909, and deposited in my office on the 1st day of June, A. D. 1909. 

I do further certify that the said ordinance was delivered to the mayor of 
said city after the passage of said ordinance by the city council without delay 
by the city clerk of said city, and that the said mayor failed to return the same 
to the said council at its next regular meeting, occurring not less than five days 
after the passage of said ordinance, with his objections thereto, whereupon the 
said ordinance took effect in like manner as if he had approved the same. 

I do further certify that the original, of which the foregoing is a true copy, 
is intrusted to my care for safe-keeping and that I am the keeper of the same. 

In witness whereof I have hereunto set my hand and affixed the corporate 
seal of the city aforesaid at the said city, in the county and State aforesaid, 
this 29tli day of June, A. D. 1909. 

Francis D. Connery, City Clerk. 

[Seal—City of Chicago.] 


FRANCHISE TO ST. LOUIS PNEUMATIC TUBE CO. 

AN ORDINANCE To authorize the St. Louis Pneumatic Tube Company to lay and main¬ 
tain pneumatic tubes, with necessary appurtenances, to be used for the purpose of 

transmitting the United States mail in and under certain streets in the city of St. 

Louis. 

Be it ordained by the Municipal Assembly of the City of St. Louis as follows: 

Section 1. The St. Louis Pneumatic Tube Company is hereby granted the 
power and is authorized to lay and maintain pneumatic tubes, with the neces¬ 
sary manholes and switches, to be used for the purpose of transmitting the 
United States mail under contract made with the United States, in and under 
the following-named streets of St. Louis: Locust Street from Ninth Street to 
Third Street; Third Street from Locust Street to Olive Street; Olive Street 
from Second Street to Third Street; Ninth Street from Washington Avenue to 
Pine Street; Pine Street from Ninth Street to Twentieth Street; Nineteenth 
Street from Pine Street to Olive Street; Nineteenth Street from Pine Street to 
Market Street; Twentieth Street from Tine Street to Clark Avenue; Washington 
Avenue from Ninth Street to Third Street. 

The pneumatic tubes herein authorized shall be used exclusively for the trans¬ 
mission of United States mail. The said work shall be begun within ninety 
days of the approval of this ordinance and shall be completed within twelve 
months thereafter. 

A discontinuance or abandonment of the use of said pneumatic tubes for the 
transmission of mail by the United States Government for a period of one year 
shall cause a forfeiture of all the rights, privileges, and franchises herein 
granted. 

Sec. 2. The St. Louis Pneumatic Tube Company, in performing said work 
and maintaining said tubes, shall comply in all respects with the requirements 
of the Revised Ordinances of the City of St. Louis and all amendments thereof, 
and its work shall be subject to the supervision and control of the board of 
public improvements. 

The city of St. Louis shall, at all times, through the board of public improve¬ 
ments, have the right to inspect, superintend, and control the construction of 
the tubes and other appurtenances constructed under this ordinance, and the 
city reserves the right from time to time to order any changes to be made 
either in the construction, material, or manner of maintaining same, or in the 
location in the street. All such changes or alterations shall be made by the 
St. Louis Pneumatic Tube Company without expense to the city, and if the said 
company fails to comply with any ordinance directing such changes, within 
such time as may be specified therein, then said board may cause such changes 
or alterations to be made by the city, and the company owning the pipes or 
other appurtenances so changed or altered shall pay the costs thereof on demand 
by the city comptroller. 

Failure to make such payment when so demanded shall constitute a breach 
of the bond as provided for in the next succeeding section. 



PNEUMATIC-TUBE SYSTEM. 


399 


Sec. 3. This ordinance shall not take effect unless within ninety days from 
the date of its approval the company shall file with the city register its written 
acceptance of the terms and conditions*of this ordinance and its agreement to 
be bound thereby, and file the penal bond of said company in such form as 
shall be approved by the city counsellor in the sum of fifty thousand dollars, 
with two or more good and sufficient securities, to be approved by the mayor 
and council, conditioned that the said company will observe and comply with 
all the terms and conditions of this ordinance and conditioned that said com¬ 
pany shall hold the city of St. Louis harmless from all damages arising from 
the construction or maintenance of said pneumatic tubes. 

And if at any time said bond shall be impaired by recovery thereon in any 
•court of competent jurisdiction or by reason of the death or insolvency of any 
of the sureties thereon, then and in such event said St. Louis Pneumatic Tube 
Company shall renew said bond so that at all times the sum thereof shall be 
fifty thousand dollars, with surety as aforesaid and all renewals of said bond 
shall be made within twenty days after notice in writing by the mayor. 

Any failure to comply with the provisions of this section by said St. Louis 
Pneumatic Tube Company shall work a forfeiture of all rights and privileges 
herein granted. 

Sec. 4. In consideration of the privileges granted in this ordinance, the said 
St. Louis Pneumatic Tube Company, for itself, its successors, and assigns, agrees 
to and binds itself to make on the first Monday in January, nineteen hundred 
and four, and also on the same day in each year thereafter during the duration 
of this franchise, which shall be twenty-five years, an annual statement of its 
gross earnings. Said statement to be sworn to by its president and secretary, 
and also, upon the said designated days, to pay into the city treasury, for 
the sole use and benefit of the said city of St. Louis, a sum of money equal 
to five per cent on the said gross receipts. 

The comptroller of the city of St. Louis shall have the right, at his discretion, 
to inspect the books of said company so far as the same bear on the amount 
of its gross receipts. 

Approved, June 10, 1903. 


(By the city of Philadelphia.) 

AN ORDINANCE Regulating the laying and construction of underground wires, electrical 
conductors, conduits, cables, and tubes in the city of Philadelphia. 

Section 1. The select and common councils of the city of Philadelphia do 
ordain. That every company, corporation, firm, or individual desiring to lay 
or construct a line or lines of telegraph, telephone, electric-light wires, elec¬ 
trical conductors, conduits, cables, or pneumatic tubes under any of the streets 
or highways of the city shall first file with the board of highway supervisors 
an application in writing, accompanied by a general plan and specification, show¬ 
ing the location of the proposed work, and so far as shall be practicable that 
of all structures existing under said streets or highways upon which they may 
desire to lay or construct their line or lines of wires, electrical conductors, 
conduits, cables, or tubes. 

Sec. 2. In order to avoid the placing of unnecessary wires, electrical con¬ 
ductors, conduits, cables, or tubes on streets or highways already occupied by 
such, and to avoid interference with the water, gas, and sewerage system of 
the city, the board of highway supervisors shall have authority to alter and 
change* the route or plans submitted by any company, corporation, firm, or 
individual, as they may think for the best interests of the city, and, upon the 
approval of a route and plan by the said board of highway supervisors, they 
shall cause said route and requirements to be drafted into the form of an 
ordinance to be submitted to councils for their approval or disapproval. The 
said ordinance shall be accompanied by plans approved by the board of high¬ 
way supervisors. 

Sec. 3. The board of highway supervisors are hereby authorized, upon the 
passage of a resolution by councils, to grant permission to any company, cor¬ 
poration, firm, or individual to which privileges have been or may hereafter 
be granted for the construction of main lines of telegraph, telephone, electric- 
light wires, electrical conductors, conduits, cables, or pneumatic tubes, to lay 
or build branch lines therefrom not extending beyond three squares direct from 
the main lines, which privilege shall be revocable at any time by councils. 



400 


PNEUMATIC-TUBE SYSTEM. 


Sec. 4. The laying, construction, and maintenance of all wires, electrical con¬ 
ductors, conduits, tubes, or cables shall be under the supervision of the chief 
of the electrical department and subject to his approval; and the same shall 
be laid under the rules and regulations of the board of highway supervisors. 

Sec. 5. That every company, corporation, firm, or individual to which privi¬ 
leges have been or may hereafter be granted for the laying or construction of 
a line or lines of wires, electrical conductors, conduits, cables, or tubes shall be 
liable for any injury or damages to gas, water mains, pipes, or sewers by the 
opening of the streets or the laying of their wires, electrical conductors, con¬ 
duits, cables, or tubes therein, and this condition shall be set forth in the bond 
provided for in section 11 of this ordinance. 

Si c. 6. That whenever the city may desire to use or occupy any of the wires, 
electrical conductors, or cables for municipal purposes, the company, corpora¬ 
tion, firm, or individual to which the privilege has or shall hereafter be granted 
for laying or constructing such lines or branches shall furnish three good work¬ 
ing wires, upon thirty (30) days’ notice to the electrical department, without 
any cost to the city. 

Sec. 7. That whenever the city may desire to occupy or use a tube or cham¬ 
ber in any of the conduits or tubes which have heretofore been or may hereafter 
be laid by authority of councils, the company, corporation, firm, or individual 
owning such conduits or tubes shall, upon thirty (30) days’ notice from the 
chief of the electrical department, furnish said department, free of cost or 
charge to the city, at least one tube or chamber in such conduits or tubes: 
Provided, That this section shall not be construed to apply to companies, cor¬ 
porations, firms, or individuals laying wires who have complied with section 6 
of this ordinance, of which compliance the chief of the electrical department 
shall be judge. 

Sec. 8. That every company, corporation, firm, or individual to which privi¬ 
leges have been granted for the laying of pneumatic tubes shall, upon notice 
from the chief of the electrical department, supply free service to the city of 
Philadelphia and the departments thereof between such points as are or may 
be reached by their system. 

Sec. 9. Every company, corporation, firm, or individual to which privileges 
have heretofore or may hereafter be granted for the laying of wires, electrical 
conductors, conduits, cables, or tubes under any of the streets or highways of 
the city shall, on or before the first Monday of November in each and every 
year, certify under oath to the chief of the electrical department the number 
and location of wires, electrical conductors, conduits, cables, or tubes and the 
miles of wire laid underground by authority of ordinance. Upon failure to 
make such a return on the part of any company, corporation, firm, or indi¬ 
vidual within thirty days from the time specified, the privileges granted by 
this or any other ordinance, or by the board of highway supervisors under any 
resolution of councils, shall cease and determine, and the chief of the electrical 
department shall thereupon cause the wires, electrical conductors, conduits, 
cables, or tubes to be either disconnected from the buildings or removed from 
the streets, and any expense or cost resulting therefrom shall be charged to 
and against such company, corporation, firm, or individual, and the city solicitor 
is directed and authorized to collect the cost from such company, corporation, 
firm, or individual for said disconnection or removal by proceeding upon the 
bond as required to be given by them, as provided in section 11 of this ordi¬ 
nance. And should the amount of said bond be insufficient to cover the costs 
and charges, he is further authorized and directed to take other proceedings to 
recover die same. 

Sec. 10. The chief of the electrical department shall at all times have free 
and unobstructed access to the wires, conduits, cables, electrical conductors, or 
tubes for the purpose of inspecting the same or making connections therewith for 
wires or conductors in use or to be used by the city. 

Sec. 11. That upon the passage of an ordinance granting any company, corpo¬ 
ration, firm, or individual privileges under this ordinance, or any ordinance now 
in force or to be hereafter passed, relating to or regulating underground wires, 
electrical conductors, conduits, cables, pipes, or tubes, the said company, corpo¬ 
ration, firm, or individual shall, before exercising any privileges thereunder, 
give a bond, to be drawn and approved by the city solicitor, and to be entered 
of record, in the sum of five thousand (5,000) dollars, conditioned that they will 
properly relay and pave all openings made by them, and thereafter keep in 
repair for a period of three years the paving over said openings, and that they 


PNEUMATIC-TUBE SYSTEM. 


401 


will comply with the provisions of section 5 of this ordinance for a like period 
of three years. And a certificate of such approval shall be furnished by the city 
solicitor to the board of highway supervisors before a permit shall be issued for 
the opening of any street or highway for the purpose named; and the company, 
corporation, firm, or individual to which any privilege is granted shall, before 
the issuance of a permit, pay fifty (50) dollars to the city treasurer for printing 
of the ordinance granting the privileges asked. 

Sec. 12. Should any company, corporation, firm, or individual to which privi¬ 
leges have heretofore or shall hereafter be granted for the laying of under¬ 
ground wires, electrical conductors, conduits, cables, or tubes dispose of any of 
the franchises granted by ordinance, or lease to, consolidate, or merge with any 
other company, corporation, firm, or individual, they shall forfeit all rights and 
privileges granted to them by the city of Philadelphia, and upon satisfactory 
proof being furnished to the chief of the electrical department and the city 
solicitor, they are hereby authorized and directed to take similar action against 
the offending company, corporation, firm, or individual, as provided for in 
section 9 of this ordinance. 

Sec. 13. All ordinances providing for license charges upon underground wires, 
electrical conductors, conduits, cables, or tubes, as well as all other ordinances 
or parts of ordinances inconsistent herewith be, and the same are hereby, 
repealed. 

Approved the fifth day of August, A. D. 1886. 

William B. Smith. 

Mayor of Philadelphia. 




STATISTICS OF THE SERVICE PERFORMED 
ON PNEUMATIC-TUBE ROUTES 


IN THE CITIES OF NEW YORK, BROOKLYN, PHILADELPHIA, 
CHICAGO, BOSTON, AND ST. LOUIS, REPORTED 
BY THE RESPECTIVE POSTMASTERS 


403 


% 
















I 














From— 


To— 


West side, north. 


General post office. 

V.. 

A. 

O. 

O. 

E. 

Times Square. 

Times Square. 

G. 

W. 

H. 

I. 


General post office. 

V. 

A. 

O. 

c. 

E. 

Times Square. 

Grand Central. 

G. 

W. 

H. 

I. 

J. 

L. 


West side, south. 


L . 

J. 

I. 

H. 

W. 

N. 

G. 

Grand Central. 
Times Square.. 
E.............. 

c. 

o. 

A. 


J. 

I. 

H. 

W. 

N. 

G. 

Times Square. 

Times Square. 

E. 

O. 

o. 

General post office. 


East side, north. 
General post office.. 

Madison Square. 


Grand Central. 

Y.. 

K. 

U. 


Madison Square. 
Grand Central... 


Y.... 

K. ... 

U.... 

L. ... 


East side, south. 


L. 

U.. 

K. 

Y. 

Grand Central. 

F. 

Madison Square. 

D. 


U. 

K . 

Y. 

Grand Central. 

Madison Square. 

D. 


General post office. 
South of general post office. 


General post office... 

Wall Street. 

P. 

General post office. 

Hudson Tunnel. 

General post office. 

Brooklyn. 


Wall Street. 

P. 

General post office. 

Hudson Tunnel. 

General post office. 

Brooklyn. 

General post office. 


Dis¬ 

tance. 


HE SERVICE PERFORMED ON PNEUMATIC TUBE ROUTE 607011, CITY OF NEW YORK, N. Y., FOR PERIOD FROM MARCH 2 TO 8, 1913, INCLUSIVE. 


0. 91 


.96 

1.17 

1.06 

1.17 

2.13 

1.07 

1.19 

.71 

1.12 


1.12 

.71 

1.19 

1.07 

.78 

1.37 

1.17 

1.06 

1.17 

.96 

.87 

1.37 

1.14 


2.54 

1.18 

1.31 

1.10 

.83 

1.25 


1.25 

.83 

1.10 

1.31 

.92 

.69 

. 65 
1.97 


.51 

.49 

.88 

.45 

.45 

1.65 

1.65 


4 

5 

6 

7 

8 

9 


IO 



11 


12 

Popula¬ 

tion 

served, 

latter 

point. 

Postal revenue 
(receipts) year 
i ended June 30 
1912, latter 
point. 

Num¬ 
ber of 
clerks, 
latter 
point. 

Num- 



Mails received at latter point. 

Mails dispatched at latter point. 

Actually advanced 
by tube. 

ber of 
car¬ 
riers, 
latter 

Trips of 
collect io 
latte 1 
point. 

Trips 
of de¬ 
livery, 
latter 

First class. 

Other classes. 

First class. 

Other classes. 



point. 

point. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

First class. 

Other 

classes. 

. 456,300 

92,000 
178,000 
71,676 
128,000 
290,000 
210,793 
260,000 
240,000 
85,000 
192,027 
79,388 
175,000 
225,000 

86,804,692.50 
387,249.52 
637,616.41 
800,170.75 
307,483.90 
1,252,823.19 
757,955.45 
1,890,393.93 
460,314.10 
153,944.20 

198.781.18 
88,289.42 

284,138.12 

177.458.19 

448 

49 

58 

80 

31 
135 

97 

154 

61 

33 

42 

24 

46 

32 

233 

41 

57 

55 
41 

133 

112 

113 

111 

56 
92 
43 
S5 
53 

27 

28 

18 to 26 
24 to 28 

16 

24 to 28 

19 to 28 
16 to 24 

15 

16 
16 
16 
19 
16 

8 

9 

9 

7 

6 

7 

7 to 8 
7 to 8 
6 to 8 

8 
8 
8 
8 

6 to 8 

7,446,683 
415, 745 
586,294 
434,453 
812,600 
1,157,158 
520,964 
8,748,458 
563,002 
330,955 
461,231 
191,429 
706,861 
S61,887 

10,909,725 
137, S25 
68,800 
162,769 
56,768 
2,362,946 
94,594 
10,629,524 
115,474 
93,831 
66,455 
48,709 
293,570 
972,538 

1S3,968 
3,984 
3,683 
6,226 
10,921 
. 21,735 

81,192 
3S2,509 
218,652 
13,830 
14,452 
4,971 
31,259 
32,878 

10,889,950 
60,636 
33,299 
80,847 
55,479 
355,542 
285,445 
17,299,775 
119,041 
75,770 
97,223 
57,958 
263,500 
10,229 

7,454,795 
750,284 
466,859 
600,235 
336,902 
2,879,495 
700,499 
5,4.32,172 
639,955 
301,762 
221,941 
191,809 
786,518 
1,776,422 

8,853,487 
25,517 
37,203 
147,931 
315,500 
868 ,533 
94,796 
16,155,253 
78,634 
15,192 
51,078 
50,232 
46,771 
16,039 

70,227 
2,625 
5 
353 
4,129 
5,601 
7,148 
126,323 
59,394 
8 ,779 
32,043 
50,613 
34,256 
11,081 

10,519,405 
90,462 
164,540 
291,841 
43,524 
335,392 
581,686 
18,175,323 
56,278 
22,828 
12,895 
29,976 
53,390 
3,260 

4,066,904 
887,135 
558,100 
740,859 
864,502 
1,210,995 
535,640 
6,008,500 
478,003 
242,650 
413,190 
3.83,23S 
1,333,100 
1,391,500 

254,195 
4,009 
1,505 
3,958 
14,150 
8,200 
17,925 
97, S60 
22,576 
10,722 
35,270 
75,584 
45,280 
30,050 

99,89i 

”243,’733.37’ 

.33’ 

.59' 

. 16* 

6 to 8 

””279,’869' 

”’74,'994" 

”’2,’i90' 

.80,'336’ 

26i,579 

’”36,’§74’ 

” ”2,'576’ 

’ "is," 323 ’ 

572,*760’ 

”i2,"582’ 

122,767 

1,940,767.58 

153 

87 

16 to 28 

7 

1,110,891 

89,328 

8,566 

196,595 

1,557,133 

389,416 

3,022 

52,355 

820,150 

4,300 

259,068 
218,670 
305,050 

204,178. 63 
165,886.18 
140,148.36 

38 

33 

31 

87 

67 

64 

16 

16 

16 

6 to 8 

8 

6 to 8 

320,438 
484,494 
281,691 

42,667 
74,372 
42,472 

11,606 

5,235 

4,298 

62,887 
60,471 
125,853 

229,083 
188,801 
348,654 

28,432 
41,336 
27,528 

12,912 
1,229 
93,740 

30,752 
5,026 
46,925 

470,335 
538,636 
464,740 

16,998 
5,171 
92,704 

'151,’666’ 

”” 362 ,’495.35 

'”' 59 ’ 

82 

.24’ 

' 7’ 

’763,175’ 

.7i,743 

'” 7 ,’863’ 

” ”248,’ 840 ’ 

’ 542 ,’ 651' 

”’ii6,’9ii’ 

io8,’670 

2i4,’6i9’ 

;;;;;;;;;;;; 

”498,330 

46, M3 

321,000 

992,498.38 

’”’95 

100 

20 to 28 

7 

721,932 

189,383 

5,510 

309,191 

1,220,635 

611,054 

18,952 

673,738 

1,409,204 

22,530 

111,044 
163,179 

1,479,953.49 
799,901.24 

79 

85 

89 

106 

28 

3 to 30 

8 

8 

636,591 
834,645 

147,046 
194,402 

2,069 

3,487 

72,703 
263,314 

572,749 
834,527 

86,700 

65,011 

3,721 
38,626 

175,664 
111,323 

634,560 

928,022 

3,431 

28,622 

”i2,’666’ ’ 

”” 996 ,546.14 

'■’’66" 

39’ 

20 to 27 

8 

3,410,391 

3,730,517 

150,601 

3,408,368 

3,172,589 

6,318,387 

234,252 

4,504,776’ 

’”474,’ i44‘ 

”64,’474" 

. 


. 

. 

. 

- 


. 


. 

«838,080 

. 

3 3,670 

. 

. 

. 


Trips. 


13,815 
15,487 
13,730 
4,714 
15,657 
16,889 
14,078 
9,167 
9,639 
7,400 
6,791 
5,530 
2,861 


5,354 
7,837 
8,373 
9,675 
12,120 
12,819 
12,179 
6,549 
12,2S4 
13,533 
4,500 
11,100 
12,597 


18,873 

19,929 

9,147 

7,589 

5,694 

4,389 


3,587 
4,032 
5,082 
4,872 
16,663 

17,000 

15,210 
16,171 


7,642 
6,788 
5,996 
14,007 

11,107 

6,368 

4,036 


13 


Number of trips. 


By tube. 


Time in 
transit 
(min¬ 
utes). 


3* 

3J 


Speed 

per 

bour. 1 


i About 30 miles per hour. 

78419—13 (To follow page 379.) No. 1. 


2 jforse wagons about 5 miles per hour; motor wagons about 9 or 10 miles per hour. 


3 4 ( jjoo carriers in each tube unit. 


By wagon. 


Trips. 


241 

None. 

157 

None. 

175 

163 

169 

None. 

119 

119 

119 

119 

None. 


None. 

80 

80 

80 

80 

80 

None. 

161 

161 

161 

None. 

161 

161 


121 

168 

99 

99 

99 

99 


75 

75 

75 

75 

130 

131 

131 

129 


118 

118 

119 

409 

409 

192 

192 


Time in 
transit 
(min¬ 
utes). 


5 

17 

7 


4 
8 
8 
6 

7 

"*7 

17 

5 

"9 

8 


Speed per 
hour. 3 


14 


Tube. 


Contract 
capacity 
based on 15 
seconds’ 
headway 
20-hour 
day. 3 


7 

22 


12 

8 

24 

4 


20 

20 


Carriers 
sent in 
one day 
(Mar. 6). 


2,187 
2,490 
2,005 
640 
2,465 
2,472 
2,494 
1,396 
1,665 
1,184 
1,071 
873 
252 


819 

1,396 

1,483 

1.790 

2,128 

2,218 

2.170 

1,121 

1,919 

2,069 

608 

1,721 

1,945 


3,030 

3,352 

1,485 

1,356 

916 

713 


496 

553 

463 

557 

2,728 

2,804 

2,487 
2,707 


1,308 

1,181 

1,004 

2,320 

1,740 

1,121 

591 


Greatest 
number 
carriers 
sent in 
one hour 
(Mar. 6,7 
to 8 p. m). 


240 

240 

240 

52 

240 

240 

240 

193 

210 

161 

127 

113 

78 


26 

52 

55 

76 

129 

139 

173 

103 

181 

190 

78 

222 

210 


240 

240 

82 

60 

36 

24 


104 

119 

125 

145 

149 

240 

217 

240 


196 

96 

151 

240 

240 

181 

98 


Capacity 
utilized, 
per cent 
(Mar. 6). 


1 Daily except Saturday and Sunday. 


46 

52 

42 

13 

51 

52 
52 
29 
35 
25 
22 
18 

5 


17 

29 

31 

37 

44 
46 

45 
23 

40 
43 
13 
36 

41 


63 

70 

31 

28 

19 

15 


10 

12 

10 

12 

57 

58 

52 

56 


27 

25 

21 

48 

36 

23 

12 


15 

Tube inadequacy when volume of mail is 
too great for tube pieces. 


16 


All mails. 


17 

All special de¬ 
livery. 


18 


From 

hours. 


First- 
class 
sent by 
other 
means. 

Percent¬ 
age of all 
mails dis¬ 
patched 
by tubes 
at former 
point. 

Collected at latter 
point. 

Delivered from lat¬ 
ter point. 

Mailed 

Deliv¬ 

ered 

from 

latter 

point. 

mail orig¬ 
inating in 
district 
at latter 

To hours. 

First class. 

Other 

classes 

First class. 

Other 

classes. 

at 

latter 

point. 

point for 
delivery, 
same city 










4,011 

394,041 
179,973 
145,866 
195,287 
58.022 
617,354 
328,793 
342,029 
446,845 
162,044 
89,447 
122.536 





711,249 
487,737 
748,166 
325,010 
1,396,625 
888,427 
2,698.902 
767,229 
283,615 
295,485 
194,089 

92,071 

151,232 

4,125,131 

582,392 

4,351 














87,073 


1,037 





41 # ,VN 







181^869 

R7R 




















1,440 

1,658 

2,066 

1,047 








. 

. 

. 

. 

A i %J , • 

25,539 

391,145 

Uhl ) 0*1*. 

83,605 

709 

. 

. 

. 

. 

57,758 

192,186 

40,098 

292 

549 





225,796 
















137,584 

. 




299,S80 

.21,033 

” 354 ,863’ 

82,"526’ 

i,045 

”i’ 62 o’ 

'141,212 

f 6.30 p. m. 
< 4 3.48 p. m. 
I 3 12.48 p.m. 
5 6.00 p. m. 

7.30 p. m. 

4 8.58 p. m. 

5 4.00 p. m. 

97,880 
l 270,625 

li 

Hi 

1,946,549 

523,377 

1,200,219 

205,161 

2,103 

1,669 

504,663 

0 7.30 p. m. 

1 


37,392 

5,673 

67,352 



523 

468 

931 

655 

157,490 
127,231 

. 

. 

. 

. 

239,352 

568.081 

279,265 

111,885 
65,124 
56,838 

. 





312 

540 

260,101 

1* 4.00 p. m. 
V 1-00 p. m. 

4 S.00 p. m. 

} 85,833 

US 

669,874’ 

327,782’ 

””785,’332’ 

”259,’703 

i,038 

i,634 

”188,' 892 




1,829,240 

674,053 

908,866 

296,064 

1,199 

1,492 

933,440 






175,646 

102,335 

756,513 

1,053,812 

74,597 
219,187 

931 

773 

1,927 

1,792 


. 

. 

. 

. 

924,303 

207,189 
323,814 

j 4 4.30 p.' in. 
V 1-40 p. m. 

4 9 .18 p . in . 

4 9.18 p. m. 

}l,173,807 

34J 

2,805,322’ 

”i," 741,072 

431,979* 

’51,022 

”i,'589' 

” 336 " 

i,’463,’442 


........... 

. 

. 

. 

. 

. 

. 

. 

. 

. 



5 Saturdays. 



«To New York. 


























































































































































































































































































































































































































































































































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1 

2 

[ 

3 

4 

5 

6 

7 

8 

9 


10 





Popula- 

Postal 

revenue 

Num¬ 

ber 

of 

clerks 

latter 

point. 

Num- 

Trips 

Trips 

Mails received at latter point. 

From— 

To— 

Dis¬ 

tance. 

tion 

served 

latter 

year ended 
June 30, 
1912, 

ber of 
car¬ 
riers 
latter 
point. 

of 

collec¬ 

tion 

latter 

point. 

of 

deliv- 

, ei 7 

First class. 

Other classes. 




point. 

latter 

point. 

la l lei 
point. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

General post 
office. 

Station L. 

1.35 

64,408 

$204,958 

1 

19 

50 

10 

5 

830,520 

106,434 

3,255 

269,220 


STATISTICS OF THE SERVICE PERFORMED OF PNEUMATIC-TUBE ROUTE 507003, CITY OF BROOKLYN, N. Y„ FOR PERIOD FROM MARCH 2 TO 8, 1913, INCLUSIVE. 


11 


MaUs dispatched at latter point. 


First class. 


Tube. 


437,778 


Other 

means. 


Other classes. 


83,106 


Tube. 


1,127 


Other 

means. 


102,515 


13 


Actually 
advanced 
by tube. 


By tube. 


First class. 


All, 

1,268,298 
both 
ways. 


Other ™. 
classes, i ^ n P s - 


4,382 : 4,083 


Time in 
transit. 


2 min. 41 sec. 


Speed 

per 

hour. 


Miles. 

30 


78419—13 (To follow page 379.) No. 2. 






14 



1 

15 



16 


17 

18 

f trips. 




Tube. 



Tube inadequacy when volume 
of mail is too great for tube. 


All mails. 


All special delivery. 

Local mail 
originating in 
district at 
latter point for 
delivery 
same city. 

By wagon. 

Contract capac¬ 
ity based on 15 
seconds head¬ 
way, 20-hour 
day. 

Carriers 
sent in 
one day. 

Greatest 
number 
earners 
sent one 
hour. 

Capacity- 

utilized 

(per 

cent). 



Pieces 

first 

Per¬ 

cent¬ 

age. 

Collected at latter point. 

Delivered from latter point. 



Trips. 

Time in 
transit. 

Speed 

per 

hour. 

From— 

To— 

class 

sent 

other 

means. 

F'irst class. 

Other classes. 

First class. 

Other classes. 

Mailed at 
latter point. 

Delivered from 
latter point. 

170 

15 min.. 

Miles. 

4.64 

9,600 a day in 
both direc¬ 
tions or 4,800 
in each di¬ 
rection. 

731 in both 
directions. 

51 

7f 

Hours. 

None. 

Hours. 

None. 

None. 

None. 

198,802 
Collected at 10 
contributory 
stations, 
517,146. 

34,979 
Collected at 10 
contributory 
stations, 
102,799. 

268,999 
Delivered at 
10 contribu- 
tory sta¬ 
tions, 1,009,- 
053. 

66,813 
Delivered at 
10 contribu- 
tory sta¬ 
tions, 227,583. 

505 

Mailed at 10 
contributory 
stations, 

909. 

576 

Delivered at 
10 contribu- 
tory sta¬ 
tions, 1,981. 

122,330 
Originating at 
10 contribu- 
tory sta¬ 
tions for local 
delivery in 
city, 276,107. 


Contributory stations. 


Flat bush station. 

Vandeveer station. 

Station V. 

Station C. 

Fort Hamilton station.. 

Station Y. 

Bath Beach station_ 

Blythebourne station... 
Coney Island station 
Sheepshead Bay station. 

Total. 


Population 
of adjacent 
territory 
fed by 
tube. 

Revenue 
from 
stations 
fed by 
tube. 

Number 

of 

clerks. 

Number 

of 

carriers. 

Trips of collection. 

Trips of delivery. 

56,600 

$77,083 

13 

52 



23,167 

14,801 

5 

24 



120,221 

129,826 

16 

54 



86,649 

106,275 

16 

52 



20,181 

14,932 

3 

13 



39,596 

20,803 

7 

33 

■7 to 10 trips are performed... 

4 trips are made. 

27,100 

21,159 

5 

16 



35,911 

36,78.5 

6 

25 



10,328 

29,664 

4 

7 



10,160 

8,203 

3 

10 



429,913 

459,831 

78 

286 

















































































































































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STATEMENT OF THE SERVICE PERFORMED ON PNEUMATIC-TUBE ROUTE NO. 510006, CITY OF PHILADELPHIA, PA„ FOR PERIOD FROM MARCH 2 TO 8, 1913, INCLUSIVE. 


From— 


To— 


Central . 

Penn Square. 

Central . 

Reading . 

Central . 

Bourse . 

Central. 

Station S. 

Bo. 

Station O. 

Do. 

Fairhill . 

Do . 

North Philadelphia. 

Penn Square. 

Station J. 

Do... 

Station C. 

Central... 

Southwark 
Do.... 

Station D. 


Distance. 


Central. 

Penn Square. 

Central. 

Reading Terminal.. 

j Central. 

Bourse. 

{ Central. 

j Station S. 

I Central. 

| Station O.. 

Station S. 

Fairhill. 

Station O. 

North Philadelphia... 

Fairhill. 

Station J. 

Penn Square. 

Station C. 

Station .T. 

Southwark. 

Central. 

Station D. 

Southwark. 


0.7267 
.7267 
.2785 
.2785 
.56 
.56 
1.411 
1.411 
1.21 
1.21 
1.175 
1.175 
.623 
.623 
1.2457 
1.2457 
.8825 
.8825 
1.0155 
1.0155 
.872 
.872 


4 

5 

Population 
served, 
year 
ended 
" June 30, 
1912, 
latter 
point. 

Postal revenue, 
year ended 
June 30, 1912, 
latter point. 

245,961 

$1,617,347.88 

245,961 

1,617,347.88 

245,961 

1.617.347.88 

1.225.546.88 

1.617.347.88 
91,327.38 

1,617,347.88 
81,452. 35 
91,327. 38 
91,487.32 
81,452.35 
50,805.88 
91,487.32 

67,722. 99 

245,961 
83,300 
245,961 
98,517 
83,300 
102,350 
98,517 
85,591 
102,350 
66,271 

i20,000 

66,271 
128,820 
245,961 
180,000 
128,820 

38,294.39 
67,722.99 ; 
53,533.15 | 
1,617,347.88 

32,796. 74 
53,533.15 


latter 

point. 


903 

52 

903 

9 

903 

11 

903 

22 

903 

19 

22 

19 

19 

23 

19 

14 

52 

18 

14 

14 

903 

18 

14 


7 

' Number 
; of car¬ 
riers, 
latter 

J point. 

8 

Trips 
of col- 
lec- 

tiOD, 

latter 

point. 

9 

Trips 
of de¬ 
livery, 
latter 
point. 

244 

22 

6 

244 

22 

6 

244 

22 

6 

244 

22 

6 

49 

4 

4 

244 

22 

6 

47 

9 

4 

49 

4 

4 

47 

8 

4 

47 

9 

4 

38 

8 

4 

47 

8 

4 

33 

9 

4 

55 

8 

4 

33 

9 

4 

46 

244 

3 

22 

4 

64 

8 

4 

46 

3 

4 


lO 


Mails received at latter point. 


First class. 


Tube. 


86,975 
7,405 
51,409 
5,440 
11,379 
225 
13,455 
5,077 
13,483 
3,750 


Other 

means. 


67,557 

2,285 

1,916 


Other class. 


Tube. 


2,129 


3,184 
401 
9,053 
593 
3,423 
3,116 
4,822 
152 
2,514 
1,789 
3,996 
396 


106 

5,315 

1,022 


1,058 


471 
45 
22,663 
87 
513 


618 

'477' 


324 


2,291 
43 
1,626 


1,565 

43 

784 

265 

2,716 


546 

60 


4,111 

10 

1,017 

554 

2,948 

45 


Other 

means. 


651,965 


67 


1,560 

31,326 

7,740 

4,512 


2,599 


35,992 
2,149 
5,720 


7,502 
’i,'576' 


8,543 

450 


11 


Mails dispatched at latter point. 


First class. 


Tube. 


93,072 
53,700 
57,5S5 
16,832 
10,654 
13,455 
225 
1,883 
16,778 
2,863 
284 
2,856 
337 
19.379 
1,248 
3,370 
1,572 
3,855 
161 
573 
4,990 
1,563 
340 


Other 

means. 


85,152 
3,971 

2,480 

5,3i5 

106 

134 


Other class. 


Tube. 


630 

"65 


11,229 

40 

25 


8 

i, 455 

"372' 


22,123 
9,389 

"ie 


133 

8,553 

381 

48 

36 

65 

5 

25 

516 


Other 

means. 


4,878 


3,919 
4 

42,403 
4,143 
3,786 


12 


Actually 
advanced 
by tube. 


First 

class. 


2,406,454 


5,597 

31,320 
1,5C0 
7,576 


34,790 
2,520 
17,130 
420 
3,793 
225 
4,485 
1,833 


6,335 
284 
6,140 
666 
28,432 
1,901 
1,234 


614 

65 

483 

4,315 

""si" 


2,443 
80 

1,612 
3,546' 


3,969 
152 
331 

i, 549 
340 


Other 

class. 


852 


133 


1,715 

48 

1,607 

88 

789 

90 

778 


3,044 

"555 
.i' 

51 


13 

Number of trips. 



By tube. 


Trips 

by 

trol¬ 

ley. 

Trips. 

Time in 
transit. 

Speed 

per 

hour. 

22,772 

Min. sec. 

1 27 

Miles. 

30 

26 

16,003 

1 27 

30 

26 

22,772 

1 27 

30 

26 

4,732 

34 

30 


4,732 

34 

30 


4,365 

1 07 

30 


4,365 

1 07 

30 


7,245 

2 49 

30 

9 

5,753 
5,118 

2 23 

30 

9 

2 23 

30 

2 

4,094 

2 23 

30 

2 

4,658 

2 21 

30 

2 

4,589 

2 21 

30 

2 

3,369 

1 15 

30 

9 

3,264 

1 5 

30 

9 

3,709 

2 29 

30 

6 

3,769 

2 29 

30 

6 

1,541 

1 46 

30 

6 

1,599 

1 46 

30 

6 

3,117 

2 01 

30 

10 

2,715 

1,518 

2 01 

30 

10 

1 44 

30 

10 

2,391 

1 44 

30 

10 


By wagon. 


Trips. 


70 

70 

70 

35 

35 

19 

19 


Time 

in 

tran¬ 

sit. 


Min. 

06 

06 

06 

05 

05 

07 

07 

08 

08 

10 

10 

09 

09 

02 

02 

09 

09 

06 

06 

10 

10 

24 

24 


Speed 

per 

hour. 


Miles. 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
8.88 
S. 88 
8.S8 


14 

Tube. 


Contract 
capacity 
based 
on 15 
seconds 
headway, 
20-hour 
day. 


4,800 

4,800 

4,800 

4.800 

4.800 

4.800 
4,800 
4,800 
4,800 
4,800 

4.800 

4.800 

4.800 
4,800 
4,800 
4,800 
4,800 
4,800 
4,800 
4,800 
4,800 
4,800 
4,800 


Car¬ 

riers 

sent 

in 

1 

day 


3,253 

2,286 

3,253 

674 

676 

727 

727 

1,060 

821 

731 

584 

665 

655 

481 

466 

529 

538 

220 

228 

445 

387 

216 

341 


Greatest 
number 
carriers 
sent in 
1 hour. 


243 

233 

243 

77 

63 

251 

251 

117 

94 

104 

104 

74 

87 

69 

83 

51 

51 

27 

27 

59 

57 

27 

37 


Capac¬ 

ity 

util¬ 

ized, 

per 

cent. 


0.678 
.476 
.678 
. 140 
. 141 
. 151 
.151 
. 221 
i 171 
.152 
.122 
.136 
.136 
. 100 
.097 
.110 
. 112 
.046 
.048 
.090 
.081 
.045 
.071 


15 

Tube inadequacy when volume 
of mail is too great for tube. 


From- 


Houts. 


6p 


To— 


Hours. 


Pieces 

first 

class 

sent 

other 

means. 


26 


575 


Per¬ 

cent¬ 

age. 


16 

All mails. 

17 

All special 
delivery. 

18 

Local 

mail 

Collected at 

Delivered from 



originat¬ 
ing at 

latter point. 

latter point. 



latter 





Mailed 

Deliv- 

point 






ered 

for de- 





latter 

from 

livery 

First 

Other 

First 

Other 

point. 

latter 

same 

class. 

class. 

class. 

class. 


point. 

city. 

79,253 

1,923,809 

58,302 

127,493 

4,890 

5,159 

60,922 

20,559 

4,142 



2,360 


7.394 

79,253 

1,923,809 

58,302 

127,493 

4,890 

5,159 

60,922 

2,35o 

1,558 



320 


1,172 

79,253 

1,923,809 

58,302 

127,493 

4,890 

5,159 

eo.922 

. 




957 



79,253 

1,923,809 

58.302 

127,493 

4.S90 

5,159 

60,922 

1,716 

3,861 

5,654 

8,737 

77 


903 

79.253 

1,923,809 

58,302 

127,493 

4,890 

5,159 

60,922 

4,129 

160 

5,128 

3,827 

266 

398 

1,707 

1,716 

3,861 

5,654 

8,737 

77 

156 

903 

2.921 

4,005 

3,755 

4,164 

83 

190 

1,433 

4,129 

160 

5,128 

3,827 

266 

398 

l’ 707 

3,797 

8,995 

5.049 

7,966 

256 

418 

1,690 

1,428 

4,469 

680 

1,914 

82 

121 

357 

3,451 

3.134 

4,099 

8,082 

306 

374 

1,465 

20.559 

4.142 



2, SfiO 


7,394 

2,003 

2,627 

2,009 

2.792 

2,485 

369 

572 

3.451 

3,134 

4,099 

8.082 

306 

374 

1,465 

2,140 

947 

3,175 

2,718 

177 

600 

449 

79,253 

1,923,809 

58.302 

127,493 

4,890 

5,159 

60,922 

1,952 

2,512 

2,432 

1,655 

221 

572 

767 

2,140 

947 

3,175 

2,718 

177 

600 

449 


March 19,1913. 

78419—13 (To follow page 379.) No. 3. 









































































































































































































































































. %. . 




















































































. 












' 








' 




I 



































STATISTICS OF THE SERVICE PERFORMED ON PNEUMATIC-TUBE ROUTE 535004, CHICAGO, ILL., FOR PERIOD FROM MARCH 9 TO 16, 1913, INCLUSIVE. 


1 

ft 

3 

4 

6 

From— 

To— 

Dis¬ 

tance. 

Popular 
tion served, 
latter 
point. 

Postal revenue 
year ended 
June 30,1912, 
latter point. 



Miles. 

1 27 



General post office. 

Twentieth tube. 

1.02 

39,000 

$198,509.96 


Armour station. 

1.02 

112,212 

202,534.98 


Stock Yards. 

2.73 

111,435 

463,145.33 

General post office. 


.55 

.82 






La Salle. 

Canal station. 

.40 

74,000 

91,000 

403,629.03 

General post office. 


1.77 

13,056,743.19 



350,000 







Number 
of clerks 
at latter 
point. 


9 

17 

20 

31 

11 


14 


303 

22 

2,536 


Number 
of car¬ 
riers, lat¬ 
ter point. 


Trips 
of col¬ 
lections, 
latter 
point. 


26 

53 

59 


71 

58 

312 


102 

180 

288 

504 


122 

121 

163 


Trips of 
delivery, 
latter 
point. 


528 

804 

666 


1,680 

1,506 

7,410 


10 


Mails received at latter point. 


First class. 

Tube. 

Other 

means. 

3,254,852 
620,800 
180,050 
596,353 

6S,600 
268,000 
106,820 
146,424 

4,628,348 

152,500 

4,577,562 

247,500 

3,188,527 

760,274 

5,130,410 

62,600 

4,523 

715,430 


Other classes. 


Tube. 


2,610 


5,385 

86 


2,514 

4,520 

9,204 

4,01.7 


Other 

means. 


29,970 

84,040 

81,304 


666,160 

45,402 

22,107,195 


11 


Mails dispatched at latter point. 


First class. 


Tube. 


2,518,076 

342,450 

174,388 

499,550 

3,165,787 


3,03S,822 

5,815,376 
370,662 
6,054,525 


Other 

means. 


22,800 


11,237 
52,269 

16,200 


19,200 

21,000 

1,816 

13,539,600 


Other classes. 


Tube. 


15,770 

22,396 

10,615 


8,076 


Other 

means. 


85,000 

486,160 

26,588 

373,108 


11,712 

17,665,756 


12 


Actually advanced 
by tube. 


First class. 


727,206 

38,475 

58,152 

164,702 

756,972 


786,960 

204,864 

642 

2,476,644 


Other 

classes. 


3,125 

16,309 


13 


Number of trips. 


By tube. 


Trips. 


Time in 
transit. 


Speed 

per 

hour. 


606 
132 
132 | 
114 


Min. 


sec. 

32 

34 

37 

4 


Miles. 

30 


594 j 
858 


6 

44 




30 

30 

30 

30 


30 


786 

360 

3,582 


3 32 
3 32 


30 

30 


By wagon. 


Trips. 


222 


247 

342 

318 


306 

114 

1,549 


Time 

in 

transit. 


Speed 

per 

hour. 


Min. 

20 


7 

10 


15 

20 

20 


Miles. 

5 


14 


Tube. 


Contract 
capacity 
based 
on 15 
seconds 
headway, 
20-hour 
day. 


4,800 

4,800 

4,800 

4,SOO 

4, S00 


4,800 


4,800 
4, S00 
14,400 


Carriers 
sent in 
one day. 


1,985 

725 

513 

355 


2,935 


2,557 

2,080 

249 

10,212 


Greatest 

number I Capacity 
carriers j utilized, 
sent in ! per cent, 
one hour. 


197 
121 
1S3 
71 I 
214 i 


41.35 
15.10 
10 . 60 
7.39 

61.14 


15 


Tube inadequacy when volume of mail is too 
great for tube. 


From— 




Pieces first 

_ I class sent Percent- 

10 ■ by other 

means. 


Hours. 
7.00 a. m. 


239 


53.27 


182 

44 

455 


43.33 
5. IS 
70.91 


7.00 a. m. 
6.00 p. m. 
7.00 a. m. 
.6.00 p. m. 
6.00 p. m. 


Hours. 
8.00 a. m. 


21,600 


9.30 a. m. 
9.30 p. m. I 
10.00 a. m. 
10.00 p. m. I 
10.00 p. m. j 


129,600 

172,800 

206,900 

245,700 

175,500 


age. 


12.84 


19.50 

30.00 

28.59 

36.36 

31.01 


16 


17 


All mails. 


Collected at latter 
point. 


First class. 


Other 

classes. 


Delivered from latter 
point. 


All special 
delivery. 


First class. 


160,775 

158,521 

515,032 


3,576,895 
12,805, ’466' 


10,275 256,300 
39,484 287,870 
380,890 667,899 


1,914,060 . 

897,900 

4,333,100 6,707,328 


Other 

classes. 


M ft 6d ^ 

P° mt - j point. 


30,750 

81,495 

81,390 


217,030 

385,198 


356 

470 

368 


389 

712 

917 


... 638 

18,000 I 14,720 


18 


Local mail 
originating 
in district 
at latter 
point for 
delivery 
same city. 


34,550 

73,737 

43,942 


2,137,008 


78419—13 (To follow page 379.) No. 4. 







































































































































































V 
























































•. ' 




. . . , "X. : l - 






. 







































STATISTICS OF THE SERVICE PERFORMED OH PNEUMATIC TUBE ROUTE HO. 504003, CITY OF BOSTON, MASS., FOR PERIOD FROM MARCH 2 TO 8, 1913, INCLUSIVE 


1 


3 

4 

5 

6 

7 

8 

9 


10 



11 


12 



13 




1 

14 



15 



16 


17 

18 










Mails received at latter point. 

Mails dispatched at latter point. 

Actually 
advanced 
by tube. 


Number of trips. 




Tube. 


Tube inadequacy when volume 
of mail is too great for tube. 1 


All mails. 


All special delivery. 


From— 

To— 

Distance. 

Popula¬ 

tion 

served 

Postal 
revenue 
year ended 

Number 

of 

clerks 

Number 

of 

carriers 

Trips 

of 

collec- 

Trips 

of 

deliv- 

First class. 

Other classes. 

First class. 

Other classes. 



By tube. 

By wagon. 

Con¬ 
tract ca¬ 
pacity 


Great- 






Collected at 
latter point. 

Delivered from 
latter point. 



Local mail 
originating 

June 30, 

tion 

ery 

latter 

point. 


















est 

Capa¬ 

city 

util¬ 

ized 

per 

cent. 



Pieces 

first 

class 

sent 

other 

means. 








in district 




latter 

point. 

1912, 

latter point. 

latter 

point. 

latter 

point. 

latter 

point. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

First 

class. 

Other 

classes. 

Trips. 

Time 

in 

transit. 

Speed 

per 

hour. 

Trips 

Time 

in 

transit. 

Speed 

per 

hour. 

on 15 
sec¬ 
onds 
head¬ 
way, 
20 

hours 
a day. 3 

Cdf* 

riers 

sent 

in 

one 

day. 3 

num¬ 

ber 

car¬ 

riers 

sent 

one 

hour. 

From— 

To— 

Per¬ 

cent¬ 

age. 

First 

class. 

Other 

classes. 

First 

class. 

Other 

classes. 

Mailed 

at 

latter 

point. 

Deliv¬ 

ered 

from 

latter 

point. 

at latter 
point for 
delivery 
same city. 


[•Boston general post office_ 

Miles. 

/ 0.8700 

| 186,155 

$2,326,422.71 

828 

168 

1,163 


2,565,597 

2,354,471 

1,320 

1,022,320 

3,244,327 

879,423 

4,456 

600,075 




Min. sec. 
1 1 45 

\ 1 28 

1 45 
/ 1 28 

Miles. 

* 

/ 201 
\ 325 

306 
/ 354 

Min. 

Miles. 

4,800 


/ 78 


Hours. 

Hours. 






— 





\ .7300 





V 30 

10 

12 

10 


} 5,018 
2,010 

} 52+ 
42- 





1,683,260 


2,430,480 

570,6S8 




Boston general post office.... 
Boston genera! post office.... 
Essex Street Station. 

North Station. 

.8700 

56.158 

l 

315,915.08 

85 

32 

93 

714 

2,041,840 

6,045 

2,510 

844,207 

3,119,120 

2,577,4S0 

225 

293 

194,050 




30 

| 30 

3.7 

2.4 

4.S00 

4,800 

4 son 

\ 101 
142 

/ 181 
\ 100 





142,910 

3,358 

3,375 

1,894,451 
93.080 


/ .7300 

72 


494 


3,280,160 

536,000 

50,000 

1,659,750 

2,348,426 

736,950 








325,827 

9,062 

211,146 

17,372 

400 

366 


\ .4700 

r . 









1 57 

| 30 

5 

3.6 

4.800 

} 4,754 

}49H- 





460,800 

127,050 



1,040 




] 

1 .4700 



60 

51 

163 

1,260 

785,200 

87,900 

49,350 









57 

] 

< 30 

5 

3.6 

4,800 
4,800 










14U,337 

Back Bay Station. 

lEssex Street Station. 

•1 1.1870 

51,491 

593,687.40 

56,700 

821,350 

112,600 

102,510 

105,270 




•! 2 23 

) 30 


1 3,294 

^ 26 

| 225 — 

13J 

18* 

} Hi 

5i 





982,660 

390,650 


871.000 

60,860 

1,097 

713 

494 

931 

733 

676 


Roxbury Station. 

Essex Street Station. 

Back Bay Station. 

[ 2.3247 
1.1870 
1.2477 
/ 1.0770 
\ 1.4300 
1.4300 

35,000 
75,000 

240,000.00 
146,511.10 

95,479.19 

32 

26 

45 

51 

74 

73 

1,164 

1,224 

955,800 
200,027 

74,400 
32,931 

2,920 

10,402 

35,000 

41,840 

755,200 
225,5S5 

175 

219 

300 

31,567 

42,000 
74,762 

105,400 


. 

. 

l 4 39 

2 23 

2 30 

1 

30 

30 

} 30 

1 . 



4.800 
4, S00 

4.800 

4.800 

I 

660 

880 

} 128 
24S 

1 20 
25 
50 

/ 43 






176,350 

88,950 

73,682 

Essex Street Station.... 

Station A. 

j»Roxbury Station. 

| 65,000 

22 

48 

63 

1,132 

427,190 

42,480 

75,680 

89,635 

335,020 

44,110 

68,610 




(29 
\ 2 52 

2 52 

{ . 



. 

. 

. 

. 

194,159 

13,708 

211 994 

41,964 

Uphams Comer Station. 

Uphams Comer Station. 

40,000 

38,193.39 

10 

28 

43 

504 

161,850 

56,850 

23 

46,650 

117,750 

23,500 

31,800 




1 

30 




4,800 

4,800 

\ 16 
25 





110,180 

37,146 

19.545 

2,485 

318 

366 

245,240 













-— 

_ 




. 










6,900 

900 

67,850 

16,350 

185 

239 

41,750 


i The pneumatic tubes are adequate at all times to handle mails which can advantageously be dispatched thereby. At the South Station several railway post-office trains bringing heavy mails to Boston arrive on a track at the opposite side of the station from the tube room, 
and to bring the mails direct to the general post office by wagon. 

3 Carriers sent 15 seconds headway 20 hours per day. 

Carriers sent 30 seconds headway 20 hours per day. 


Because of this fact, and also because of the numerous separations these railway post offices make, it is 


convenient to have a wagon waiting at the track of arrival 


78419—13 (To follow page 379.) No. 5. 

















































































































































i 






STATISTICS OF THE SERVICE PERFORMED ON PNEUMATIC-TUBE ROUTE 545002, CITY OF ST. LOUIS, MO., FOR PERIOD FROM MARCH 2 TO 8, 1913, INCLUSIVE. 


1 

2 

3 

4 

5 

6 

7 

From— 

To— 

Dis¬ 

tance. 

Popula¬ 

tion 

served, 

latter 

point. 

Postal rev¬ 
enue, year 
ended June 
30, 1912, 
latter point. 

Number 
of clerks, 
latter 
point. 

Number 
of car¬ 
riers, lat¬ 
ter point. 

General post office. 

Central station. 


Miles. 

1.438 

54,562 

(') 

33 

8 

55 

19 

Bridge station. 

.55 

28,917 

$293,734.27 


Trips of 
COlleC- 
tion i per 
day), lat¬ 
ter point. 


15 

15 


9 

Trips of 
delivery 
(per day), 
latter 
point. 

io 

Mails received at latter point. 

1 1 

Mails dispatched at latter point. 

12 

Actually ad¬ 
vanced by tube. 

13 

Number of trips. 

14 

Tube. 

15 

Tube inadequacy when volume 
of mail is too great for tube. 2 

16 

All mails. 

17 

All special 
delivery. 

18 

Local mail 
originating 
in district 
at latter 
point for 
delivery, 
same city. 

First class. 

Other classes. 

First class. 

Other classes. 

First 

class. 

Other 

classes. 

I)y tube. 

By wagon. 

Contract 
capacity 
based on 
15 seconds 
headway, 
20-hour 
day. 

Carriers 
sent in 
one day. 

Greatest 
number 
carriers 
sent one 
hour. 

Capacity 
utilized, 
per cent. 

From— 

To— 

Pieces, 

first 

class, 

sent 

other 

means. 

Per¬ 

cent¬ 

age. 

Collected at 
latter point. 

Delivered from 
latter point. 

Mailed 
at latter 
point. 

Delivered 
from lat¬ 
ter point. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

Tube. 

Other 

means. 

Trips. 

Time 

in 

transit. 

Speed 

per 

hour. 

Trips. 

Time 

in 

transit. 

Speed 

per 

hour. 

First 

class. 

Other 

classes. 

First 

class. 

Other 

classes. 

5 and 6 

5 and 6 

Pounds. 
17,184 
5,552 

Pounds. 

1,630 

192 

Pounds. 

891 

9 

Pounds. 
46,738 
7,218 

Pounds. 

15,350 

5,028 

Pounds. 
2,0S9 

7 

Pounds. 

4,567 

2,089 

Pounds. 
41,014 
12,956 

Pounds. 

595 

259 

Pounds. 

891 

9 

7,956 

1,941 

Min. sec. 
3 14 

1 4 

Miles. 
27.61 
31.03 

32 

Min. 
12 J 

Miles. 

4.8 

4,800 
4,800 

1,359 

300 

210 

74 

28.31 

6.25 

Hours. 

Hours. 



Pounds. 

21,171 

2,390 

Pounds. 

Pounds. 
18,814 
5,744 

Pounds. 
47,629 
7,227 

Pieces. 

1,362 

216 

Pieces. 

1,389 

( 3 ) 

( 3 ) 
















2 No inadequacy. 3 Data unknown; distributed at general post office. 


78419—13 (To follow page 379.) No. 6 


i This station established Oct. 28, 191 


















































































































INDEX. 


Page. 

American Audit Co., report of. 212-241 

On Pneumatic Transit Co. (of Philadelphia). 212-216 

Cost of construction. 213-214 

Cost of operation. 212 

Exhibits of summarized accounts from books. 214-216 

On American Pneumatic Service Co. (covering systems in Boston, New 

York. Chicago, and St. Louis). 216-241 

Cost of construction. 217 

Cost of operation. 217 

Exhibits of summarized accounts from books. 219-241 

American Pneumatic Service Co. (of Boston): 

Capital stock of. 4 

Contract with Government, period of. 4 

Cost of tubes of subsidiary companies.!. 4 

List of parents of. 34 

Owner of companies in Boston. New York. Chicago, and St. Louis. 3,4,10 

Rental paid Government under contract. 4 

Report of American Audit Co. on. 216-241 

Stock issues and bonds. 10 

Amortization: 

Tube properties might be acquired by. 112,158 

Method of computing. 149 

Philadelphia company prefers, under 25-vear contract, to sale. 166 

Anderson, Frank E. (representing: United States Pneumatic Co.), state¬ 
ment of. 107 

Batcheller, B. C., Chief Engineer American Pneumatic Service Co.: 

Examination by Mr. Murdock.22f23, 29, 32 

Statement of, continued. 40-44 

Discussion of relative merits of different sized tubes. 29-31, 40-41 

Description of tubes, carriers, and terminal apparatus. 43 

Blackmon, Hon. Fred. L.: 

Interrogation of Mr. Masten as to adoption of 30-inch tube, doing away with 

wagon and automobile service. 61 

As to the relative cost and rapidity of the two sendees. 62 

As to number of mail deliveries in business district of New York. 78 

Requests list of stockholders of American Pneumatic Sendee Co. 107 

Boston Pneumatic Transit Co.: 

Plan of system of. facing p. 34 (No. 4) 

Map of route of lines of. facing p. 364 

Construction, cost of. 217, 275, 286 

Duplication, cost of. 275, 286 

Franchise to.-. 387 

Amendment to franchise. 388 

Burton vacuum system of pneumatic transportation: 

Report on....-. 103 

Report of commission of engineers appointed by United States Govern¬ 
ment, on efficiency of. 106 

Chicago Postal Pneumatic Co.: 


Map of route of lines of. facing p. 326 

Construction, cost of... 217, 270, 286 

Duplication, cost of... 270, 286 

Franchise to. 391 

Amendment to franchise. 395 

78419—13-27 405 















































406 


INDEX. 


Collins, It. G., jr., chief engineer, United States Pneumatic Co.: Page. 

Statement of. 81-96 

Recommends 24-inch tube operated by the vacuum process. 81-96 

No plant to sell; company merely manufacturers and contractors, who 

propose to construct lines for the Government. 85, 91 

Advantages claimed for 24-inch tube as to capacity, reliability, and 

economy of operation. 94-96 

Letter to Chairman Guggenheim setting forth advantages claimed for 

24-inch tube. 96 

Construction of different systems, cost of, in tabulated form. 286 

Delano, F. M. (representing the Philadelphia Pneumatic Tube System), 

statement of.-... 32-34 

Duplication of different systems, estimated cost of, in tabulated form. 286 

Emerson, M. L., manager American Pneumatic Service Co.: 

Statement of. 44-54 

Advantages in Government operation. 52-53 

Government can operate at less expense than companies. 45 

Merits of the 8-inch and larger size tubes contrasted (Exhibit Za). 373 

Number of men employed in operating systems. 45 

Percentage of tube capacity utilized. 46-51 

Exhibit A—Map of pneumatic-tube lines, New York. facing p. 286 

Exhibit B—Inventory of equipment, New York Pneumatic Service Co. 287 

Exhibit C—Pneumatic-tube stoppages, 1912, New York. 290 

Exhibit D—Report on sections of pipe excavated and examined on the New 

York and Brooklyn lines.. 293 

Exhibit E—Report on the power plants, shop, and office equipments of the New 

York system, by David F. Atkins. 295 

Exhibit F—Memorandum of expenses in the experimental development and 
construction of the pneumatic mail tube systems, by the American Pneumatic 

Service Co. 296 

Exhibit G—Letter of Wm. H. Ames, president, expressing inability to furnish 

cost of equipment of the New York system. 299 

Exhibit H—Map of system of the Philadelphia Co. facing p. 299 

Exhibit I—Inventory of lines and property of the Philadelphia Co. 300 

Exhibit J—Report on failures of the Philadelphia tube lines to perform service 

during the year 1912, and causes therefor.;. 311 

Exhibit K—Analysis of intangible assets of the Philadelphia Co. 324 

Exhibit L—Map of route of Chicago lines. facing p. 326 

Exhibit M—Inventory of property of Chicago Co. 327 

Exhibit N—Detailed statement of interruption and suspension of tube service 

on Chicago lines during 1912. 330 

Exhibit 0—Detailed report of power-generating apparatus and equipment, 

vaults, tunnels, etc., of the Chicago system. 337 

Exhibit P.—Report on tubes and bends excavated and examined in Chicago. . 362 

Exhibit Q.—Report on physical condition of Chicago system, by William A. 

Richardson. 363 

Exhibit R.—Map of routes of Boston lines.facing p. 364 

Exhibit S.—Inventory of equipment of Boston company. 364 

Exhibit T.—Statement of postmaster at Boston showing irregularities in service 

in the Boston lines during 1912. 366 

Exhibit U.—Report on physical condition of the Boston system, by Edwin 

H. Pearson, engineer. 367 

Exhibit Y.—Map of route of St. Louis lines. facing p. 370 

Exhibit W.—Inventory of St. Louis equipment. 370 

Exhibit X.—Report of stoppages in St. Louis service during 1912. 371 

Exhibit Y.—Report on physical condition of St. Louis system, by Edwin S. 

Hallett, engineer. 371 

Exhibit Z.—Statement of H. C. Batcheller, chief engineer, as to division of 

the value of abandoned tube equipment among the different companies. 373 

Exhibit Za.—Paper by M. L. Emerson on the respective merits and specific 

uses of the 8-inch and 24-inch tubes. 373 

Exhibit Zb.—Photographs showing (a) the 10-inch and 8-inch types of carrier 
now in service on the postal pneumatic-tube systems; (b) showing interlacing 
of mail tubes at the intersection of Seventeenth Street and Sixth Avenue, 

New York. facing p. 377 











































INDEX. 


407 


Franchise: ' p age 

To Boston Pneumatic Transit Co. 387 

Amendment to. . t ..... 388 

To Chicago Postal Pneumatic Tube Co. 391 

Amendment to. 395 

To New York and Brooklyn systems. 388, 389 

To Pneumatic Transit Co. (of Philadelphia). 114 

To St. Louis Pneumatic Tube Co. 398 

Franchises, perpetual in all cities except Chicago, which latter expires in 1923. 11, 70 
Fry, Alfred Brooks, Chief Engineer and Superintendent TJ. S. Public 
Buildings, New York City: 

Statement, preliminary, of. 168-172 

Description of and information concerning pneumatic-tube line between 
United States customhouse and United States appraisers’ warehouse, 

New York City. 168-170 

Statement of, continued. 172-178 

Engineering record of. 173 

Memoranda with reference to pneumatic-tube work in connection with 

transmission of mails. 173 

Memoranda concerning proposed report on pneumatic-tube systems in 


Fry, Alfred Brooks, Consulting Engineer to the Commission, report 

of. 243-285 

On New York and Brooklyn Pneumatic-Tube System . 247-258 

Physical description. 247 

Station and power equipment. 248 

Shop and street equipment. 250 

Cost of construction. 252 

Cost of duplication. 254 

Value to Government. 254 

Cost of operating under Government ownership. 256 

Depreciation of physical property. 257 

On Philadelphia Pneumatic-Tube System . 258-266 

Physical description. 258 

Station and power equipment. 258 

Shop and street equipment. 260 

Cost of construction. 262 

Cost of duplication. 263 

Value to Government. 264 

Cost of operating under Government ownership.y. - - 265 

Depreciation of physical property. 266 

On Chicago Pneumatic-Tube System . 266-272 

Physical description. 266 

Station and power equipment. 266 

Shop and street equipment. 267 

Cost of construction. 270 

Cost of duplication. 270 

Value to Government. 270 

Cost of operating under Government ownership. 271 

Depreciation of physical property. 272 

On Boston Pneumatic-Tube System . 272-277 

Physical description. 272 

Station and power equipment. 273 

Shop and street equipment. 274 

Cost of construction. 275 

Cost of duplication. 275 

Value to Government._. 275 

Cost of operating under Government ownership. 276 

Depreciation of physical property. 277 

On St. Louis Pneumatic-Tube System . 277-280 

Physical description. 277 

Station and power equipment. 278 

Shop and street equipment. 278 

Cost of construction. 278 

Cost of duplication. 279 

Value to Government. 279 

Cost of operating under Government ownership. 279 

Depreciation of physical property. 280 





























































408 


INDEX. 


Fry, Alfred Brooks, etc.—Continued. rage * 

Reliability of systems as to stoppages. 281 

Causes of interruption in pneumatic-tube systems (tabulated). 281-282 

General remarks on the duplication of systems. 282 

Data concerning tube line between United States customhouse and 
United States appraisers’ warehouse, New York City, as to cost of con¬ 
struction, equipment, etc.-.-. 201, 283 

Data concerning the different pneumatic-tube companies (tabulated)..... 286 

Hayden, Charles H., of New York, financial agent American Pneumatic 
Service Co.: 

Statement of. 4-19 

Actual cost of tube plants. 4 

Annual rental per mile paid by Government. 4 

Capital stock of company. 4 

Contract with Government, period of. 4 

Economy in purchasing by Government. 9 

Financial statement of pneumatic-tube companies, furnished by. 19-22 

Franchises perpetual except in Chicago. 11 

In purchasing plants Government would become absolute owner of patents 

for postal purposes. 9 

Market price of bonds and stocks of company. 11 

Hearings: 

Meeting December 2, 1912. 1 

Meeting December 3, 1912. 40 

Meeting December 9, 1912. 56 

Meeting December 17, 1912. 107 

Meeting January 8, 1913. 112 

Meeting January 25, 1913. 159 

Meeting January 29, 1913. 172 

History: 

Financial, of Philadelphia mail-tube system, memorandum by J. E. Milhol- 

land. 202 

Of pneumatic-tube mail service, 1892-1908. 24-29 

Intangible assets (Exhibit K). 324-327 

Map: 

System of Boston Pneumatic Transit Co. facing p. 34 (No. 4) 

Route of lines of same. facing p. 364 

System of Chicago Postal Pneumatic Tube Co. facing p. 34 (No. 2) 

Route of lines of same. facing p. 326 

System of New York Pneumatic Service Co. facing p. 34 (No. 1) 

Route of lines of same. facing p. 286 

System of Pneumatic Transit Co. ("Philadelphia). facing pp. 114, 299 

System of St Louis Pneumatic Tube Co. facing p. 34 (No. 3) 

Route of lines of same. facing p. 370 

Masten, John M., superintendent Railway Mail Service at Pittsburgh, 

Pa., statement of. 57-81 

Discussion of relative merits of different size tubes. 58-59, 61, 72 

Cost and wear of carriers. 70 

Electric-car service as a substitute for pneumatic-tube and motor-car 

service in certain localities. 73 

Dispatch and expedition of first-class mail in New York City by pneu¬ 
matic-tube service. 74-76 

All 8-inch tubes except those in Philadelphia controlled by the Ameri¬ 
can Pneumatic Service Co.; those in Philadelphia by the Pneumatic 

Transit Co. of New Jersey. 110 

Mileage of different pneumatic-tube lines. 286 

MilhoUand, J. E., stockholder in the Pneumatic Transit Co. (of Phila¬ 
delphia) : 

Statement, preliminary, of, suggesting acquisition of the tube properties by 
the Government by an amortization process covering a 25 or 30 year 

period. 112, 158 

Statement, continued. 154-168 

Philadelphia company prefers amortization, under 25 year contract, to sale. 166 

Financial history of Philadelphia mail-tube system (memo.). 202 

Pneumatic-tube service can be made a great revenue producer for the Post 

Office Department. 155 

Situation of the service in England and on the Continent. 156 
















































INDEX. 


409 


Murdock, Hon. Victor: Page. 

Examination of Mr. Charles H. Hayden. 5-19 

Examination of Mr. B. C. Batcheller. 22-23, 29-32 

Examination of Mr. M. L. Emerson. 46-52 

Examination of Mr. John M. Masten. 57-70, 72-81 

Examination of Mr. R. G. Collins, jr. 81-92 

Examination of Mr. W. P. J. Murray. 120-139 

Examination of Mr. Alfred Brooks Fry. 168-171 

Interrogations by, as to percentage of tube capacity utilized_ 46-50, 60,120-123 

Murray, W. P. J., treasurer International Pneumatic Tube Co.: 

Statement of......... 56,114-139 

History of Pneumatic Transit Co.—Construction,capitalization,earnings.etc. 114 

New York Pneumatic Service Co.: 

Plan of system of.facing p. 34 (No. 1) 

Map of route of lines and projected extensions. facing p. 286 

Construction of New York and Brooklyn systems, ccst of. 217, 252, 286 

Duplication of same, cost of. 254, 286 

Franchises of..•... 388, 389 

Operating by Government, estimated annual cost of. 286 

Parcel Post, tube system necessary for its development. 162 

Patents: 

List of, of American Pneumatic Service Co. 34-39 

List of, owned by Pneumatic Transit Co. (of Philadelphia). 115, 211 

Letter of Wm. H. Ames, president, in reference to. 210 

Philadelphia. (See Pneumatic Transit Co.) 

Photograph: 

Of 10-inch and 8-inch pneumatic-tube carriers. facing p. 377 

Interlacing of mail tubes at intersection of Seventeenth Street and Sixth 

Avenue. New York City. facing p. 377 

Pneumatic Transit Co. (of Philadelphia): 

History of, construction, capitalization, earnings, etc. 114 

Table showing comparison of service, 1912 with 1908. 118 

Tabulated statement showing money invested year by year, construction 

costs, unpaid interest, operating losses, etc. 139 

Balance sheet, March 31, 1912. 142 

List of patents owned by. 115, 211 

Financial history of (memoranda furnished by J. E. Milholland). 202 

Franchise granted to. 114 

Plan of system of.facing pp. 114, 298 

Construction, cost of. 213-214, 262, 286 

Duplication, cost of.i. 263. 286 

Prefers amortization to sale, under 25-year contract, with slight increase of 

annual rental. 166 

Report of American Audit Co., on. 212-216 

Pneumatic tubes: 

All 8-inch tubes, except those in Philadelphia, controlled by American 
Pneumatic Service Co.; those in Philadelphia by the Pneumatic Transit 

Co. of New Jersey. e . 110 

Different sizes discussed by A. B. Fry. 177-178 

8-inch tube—statement of B. C. Batcheller. 30-31, 40-41 

8-inch and larger size, merits of, contrasted by M. L. Emerson. (Exhibit Za) p. 373 


24-incli recommended by R. G. Collins, jr., and merits set forth in his state¬ 
ment. 81-96 

24-inch tube by vacuum system compared with 8-inch by compressed air— 

data with regard to claims for... 98 

Pneumatic Tube Postal Commission, members of.inside title-page 

Pneumatic tube companies: 

Data concerning, in tabulated form. 286 

Financial statement of, furnished by Mr. Hayden. 19-22 

History of mail service by, 1892-1908. 24-29 

Pneumatic tube service: 

Can be made revenue producer for Post Office Department. 155 

Growth of, 1893-1908. 28 

Mileage in operation August 1, 1898. 25 

Mileage in operation June 30, 1899, 1900, 1901. 25 

Mileage contracted for and under operation November 10, 1908. 28-29 

Percentage of tube capacity utilized. 46-50, 60,120-123 


















































410 


INDEX. 


Pneumatic tube service—Continued. Page. 

Specifications for double line between United States customhouse and ap¬ 
praisers’ warehouse, New York City.-. 179-197 

Statistics of. performed in cities of New York, Brooklyn, Philadelphia, 
Chicago, Boston, St. Louis, for one week in March, 1913, reported by the 

respective postmasters. following p. 403 

Pneumatic tube system between United States customhouse and 
United States appraisers’ warehouse, New York City: 

Annual cost of operation of system. 201 

Data concerning cost of construction, equipment, etc. 201, 283 

Powers, Samuel L., representing American Pneumatic Service Co.: 

Statement of. 3 

Estimate of reasonable price for purchasing tube plants... 54 

Rentals, annual, paid by Government: 

To different pneumatic-tube companies. 286 

Per mile per annum paid, $17,000. 4, 32 

Report of American Audit Co. 212-241 

(See “American Audit Co.”) 

On Burton Vacuum System of pneumatic transportation. 103 

Of Commission of Engineers appointed by United States Government on 

efficiency of. 106 

Of Alfred Brooks Fry, as consulting engineer to the commission. 243-285 

(See “Fry, Alfred Brooks, consulting engineer.”) 

Of Public Printer, showing cost of delivery by messenger, wagon, and 
automobile service between the Capitol, Government Printing Office, 

and other Government buildings for the year ending Nov. 13, 1911. Ill 

Of Nathan B. Williams.1. 378-401 

(See “Williams, Nathan B., attorney.”) 

Smith, Senator Hoke: 

Interrogation of Mr. Hayden. 15-17 

Worth of tube companies to Government would involve two problems. ... 15 

Interrogation of Mr. Batcheller as to efficiency of 8-inch tube. 30 

How present value of Chicago plant should be fixed, franchise expiring 

in 10 years. 70 

Statistics of service performed on pneumatic tube routes for one week 
in March, 1913, in cities of New York, Brooklyn, Philadelphia, Chicago, 

Boston, and St. Louis, reported by the respective postmasters.following p. 403 

Stewart, Hon. Joseph: 

Interrogation of Mr. Hayden. 16-17 

Interrogation of Mr. Batcheller. 40-44 

Interrogation of Mr. Emerson. 49-50, 53-54 

Puts in record history of pneumatic-tube mail service, 1892-1908. 24 

Interrogation of Mr. Masten as to advantageous use of different size tubes .. 59 

St. Louis Pneumatic Tube Co.: 

Plan of system of. facing p. 34 (No. 3) 

Map of route of lines. facing p. 370 

Construction, cost of. 217, 278, 286 

Duplication, cost of. 279, 286 

Franchise to. 398 

Stuart, Kenneth E., engineer Pneumatic Transit Co. (Philadelphia), 

statement of. 149-154 

Subways, difficulty in using for pneumatic tubes. 154 

Trench work in streets of New York, recent contract prices for. 202 

Williams, Nathan B., attorney, report of. 378^101 

Franchises and ordinances, summary of. 378-385 

Franchise to Boston Pneumatic Transit Co. 387 

Amendment to same. 388 

Franchise to Tubular Dispatch Co. (New York). 388 

Franchise to New York Mail & Transportation Co. 389 

Franchise to Chicago Postal Pneumatic Tube Co. 391 

Amendment to same. 395 

Franchise to St. Louis Pneumatic Tube Co. 398 

Ordinance by city of Philadelphia regulating laying of tubes, etc. 399 

Patents, suits against Government for infringement. 385-386 

Woods, Elliott, superintendent United States Capitol: 

Statement of, with regard to the pneumatic-tube line between House Office 

Building and the Capitol. 107-110 

Memorandum as to same submitted by. 112 

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